/biz/ - Business & Finance

>>20091773
How

>>20091773
six words

NO
OPEN
SLOTS
IN
USED
NODES

unless...

>>20091773
How

>>20091805
to give some more context, because i feel generous this morning

most linkies are under the impression that once staking goes live they will be able to do something like simply click a single button and start earning free LINK from staking
it is not going to be even remotely this easy.

there will be nodes that get hundreds of thousands of jobs
nodes that get tens of thousands of jobs
nodes that get thousands of jobs
nodes that get hundreds of jobs
and of course nodes that get almost no jobs

the amount of passive income you earn from staking your LINK will be 100% entirely determined from the node that you are staking in, and the amount of jobs it recieves.
i sincerely hope that every single linkie can stake their LINK in a node that gets a reasonable number of jobs, and earns them income.

all nodes are not created equal.
those who get into high quality nodes that receive hundreds of thousands of jobs will be earning exponentially more than those that get into nodes that get thousands or hundreds of jobs.
read this again, understand it. understand that the amount of money you earn from staking your LINK is directly and completely controlled by the usage and quality of the node that you stake in.
consider this my 1 good deed for the day.

it's not passive income if you get paid in link tokens

>>20091899
How do linkies get their link into a specific "job"

>>20091919
>it’s not passive income if you get paid in pounds
>it’s not passive income if you get paid in yen
>it’s not passive income if you get paid in Canadian Monopoly money
Income is income if you want to change it to US dollars because you’re a retarded burger who doesn’t understand that LINK is a type of currency, then you are welcome to. You fucking retard.

>>20091919
INCOME IS INCOME

>>20091939
You put your LINK into a node as collateral for that node
For every job that node completes, it is paid by the job requester, in the form of LINK. This LINK is then distributed among those who are staking their LINK in the node (and a portion of it is sent to the node providing service, such as LinkPool, Fiews, ChainLayer, Huobi, etc )

>>20091939
stake with a node that is eligible for that job and hope they dont fuck it up

>>20091773
I for one am certain that staking is ready and they are just waiting for actual demand to release it.

>>20091977
Say you put link into a node that completes no jobs, can you just take it out of the node and put it into a more lucrative one?

>>20091977
Can you lose your link if the job is not completed?

>>20091899
I have no way of buying LP so I suppose I am doomed

>>20092013
Of course you can. But the issue here is of course getting into a more lucrative node.

These nodes will only have a certain amount of LINK they allow to be staked in the node. If that limit is reached, the node is capped and nobody else can stake in that node.
2 things will happen:
A. It will be a race to get your LINK into a high quality node (this race will be won by script kiddies)
B. You will pay a fee, or pay for rights to stake in a high quality node

>>20092025
Yes. If the node fails to complete a job accurately then the staked LINK is penalized.

This is why making sure that you get into an extremely high quality node, especially one managed by a node provider that has insurance guarantees on job failures for LINK stakers, is extremely important.

>>20091955
retarded nigger imagine earning 5% interest a year on a currency with 1000x hyperinflation

Hey guys I made a bet with my investment banker that my 10800 link stack would hit a million dollar valuation within 3 years. I was talking shit about how I beat their return the last 2 years and was feeling saucy. Am I going to win bros?

>>20091805
am i the only one scared to stake all my link in LP?

i have 15k link and hopefully will get to 20k before it moons. also have 1 LP token. kind of worried to stake it all though. might do 10k at most.

what if LP fuck up majorly

>>20092041
>These nodes will only have a certain amount of LINK they allow to be staked in the node.
You know, I hadn’t really thought about this. Why would there be a cap? If a node can service more jobs if it has more link, why wouldn’t they want their pool to be as large as possible? What’s to stop the formation of supernodes that everyone has a share in?

>>20092078
So you mean the Dollar

>>20092085
what odds did you bet at?

>>20092111
Nothing crazy, $100 to the winner. Just for fun and shit talking rights.

>>20092102
>Why would there be a cap?
If you allow an unlimited amount of LINK to be staked in your node, you will reduce the amount of LINK earned of every single person staking LINK in that node.

Say for example I have a node that consistently earns $10,000 in LINK every month
This is $120,000 every year.
I cap out the node at $1,000,000 worth of LINK staked
Everyone staking in that node is effectively earning 12% annual

Now lets say I uncap the node
There is now $50,000,000 worth of LINK staked in the node, but it still earns $120,000 every year
Every staker is now earning 0.24% annual.

>>20092132
Well from a financial point of view it's a terrible bet. you essentially traded at 50% chance of chainlink going 20x, you would be better off just buying chainlink

>>20091899
So you will stake your tokens, decrease the supply and drive the price up.
I just need to sell then, no staking needed for me.
Passive income is gay.

Someone make a virgin staker vs. chad seller meme

>>20092094
you already made it. Also, I dont think you will be able to stake all that anytime soon

>>20092152
Lmao but it's so fun.

>>20092151
if you 50x the total link on the node, won’t it increase the number of jobs it can service and therefore increase the node’s income? proportionately you personally would receive less income unless you increase your position size, but the node operator can service more jobs with more link and therefore receives more money by uncapping

>>20092165
the correct plan is sell chainlink and arbitrage rsr

>>20092214
There are a significant amount of jobs that do not require a large amount of LINK staked.
Take for example a large number of the current jobs on Mainnet right now, price feeds.

By increasing your staked LINK from $1,000,000 to $50,000,000 you have not increased the amount of jobs you can accept from price feed requests. There will be nodes that service these kinds of jobs that have no financial incentive to increase the amount of LINK staked in the node.

Because, at the end of the day, $1,000,000 staked to service an ETH/USD feed is effectively the same security as $50,000,000 staked to service that same feed.

>>20091773
How much do you think staking will reward?
I expect AT THE VERY LEAST 4%, anything less would be bullshit.

>>20091919
A feature to convert to dollars/btc/eth as you get paid is going to be a thing.

>>20092289
this of course is a blanket statement and does *NOT* apply to all circumstances

the numbers I used were merely examples, but the general idea is the same. whether its $1m to $50m or $50m to $500m
there is a point where increased staked collateral becomes unnecessary, as the current staked collateral is enough to ensure security for a specific job request, due to how important that job request is.

>>20092151
But with more staked link it could do more jobs. I do think you’re right, but only if we assume that there aren’t more jobs for that node to complete.

>>20092214
Additionally, there will be probably be privately owned businesses that operate with the sole purpose of running a node — the same way there are BTC mining farms. However, nodes will have customer/employee interaction of some kind. LINK and smart contracts will absolutely be this big eventually.