Confused about staking

[Anonymous No.16020682]

Newfag here. I don't know what staking is. You said it will make the supply of LINK decrease? How does that work? Did similar thing happen to Bitcoin and Ethereum? If so, what were their original supply?

[Anonymous No.16020688]

>>16020682
The tokenomics of the LINK token.

1. Chainlink nodes will be paid in LINK tokens only. There will be conversion tools for people that want to use fiat but will be converted to LINK. at the end of the day only LINK tokens can power the network since the nature of ERC-677 token, built specifically for LINK, is to transfer data.

2. LINK tokens are used as collateral value. Smartcontracts will use Chainlink nodes that carry a % value of LINK to the value of the Smartcontract. So yes, you can start a node without LINK but no one will use it. High value smartcontracts or any contract that has value will use nodes that carry the same or a % of value of LINK.

3. Decentralized networks that are home to smartcontracts will need decentralized data to execute. Chainlink is currently the only option. Thats why you will see everyone in this space partner with Chainlink

So....

Smart contract creators will demand a certain level of reputation or amount of collateral, to be paid in LINK tokens, that suits the value of their smart contract. A $1million bond would require a lot more collateral, than, say a smart contract dealing with $100. You wouldn't select the low rep/low collateral available nodes for something like a huge bond. Chainlink is actually targeting these high value contracts. Sergey has discussed at length why high value contracts in the financial world require a decentralized oracle: it puts all the risk onto the oracle rather than the smart contract creator. The smart contract creator doesn't risk losing money - the node operators do. The Chainlink network is genius like that.

There is infinite amount of collateral available because the token price can rise to meet it.

Now you have to research how large ALL these markets are. derivatives, insurance etc... hint: Trillions.

Is 1000$ really possibly in say the next 3-4-5 years?

[Anonymous No.16020715]

>>16020688
checked.

So the 350 M supply of LINK will eventually decrease, meaning the price of LINK will shoot up?

[Anonymous No.16020728]

>>16020715
LINK will be locked in escrow over the duration of the smart contract

[Anonymous No.16020738]

>>16020688
How did you post this 50 seconds later?

[Anonymous No.16020780]

>>16020715
The reverse is true when you're talking about supply. 350m in circulation, with a total supply of 1b. The other 650m is held by the team but that number is shrinking since they recently sold a few stacks for funding. Also they mention 30% will be used to incentivize node operators so once the network is really picking up steam they will no longer hold the majority of supply as they shift to a truly decentralized model.
Link tokens do not burn, but the value will increase as the need for collateral rises (previous poster talks about this)

[Anonymous No.16020802]

>not posting the best article about staking
https://medium.com/coinmonks/an-in-depth-look-at-the-link-token-7d92662b6819

[Anonymous No.16020805]

>>16020738
That’s what the fuck I’m trying to figure out

[Anonymous No.16020817]

I’m looking forward to stacking. I can’t wait for my stack to multiply. How often are mults applied to our stacks though?

[Anonymous No.16020829]

>>16020688
>you can start a node without LINK but no one will use it.
wrong. there may be smartcontracts where no staking/collateral is needed. perhaps something silly just to gain reputation. no one really knows how itll shake out

[Anonymous No.16020836]

>>16020738
>>16020805
pasta

[Anonymous No.16020846]

>>16020682
>Chainlink is the most decentralized oracle project at the moment, more on why this is will be released in an article coming out later this week.
Week over
>>16020468
>https://medium.com/coinmonks/an-in-depth-look-at-the-link-token-7d92662b6819

[Anonymous No.16020854]

>>16020715
The majority of circulating tokens will be staked or "in use", significantly lowering the amount that are being sold on market exchanges. But at the same time there will be a growing natural demand, because the fees to use the network are paid in link.

So everyone is making money on their stake, not selling/trading on binance...but the customers using the network have to buy for fees(and none or very little are for sale) until the offer is too high to resist. This will also be done automatically, so the customers just "pay 10usd or .002w/e btc" and a smart contract converts that by market buying that much worth of link.

That 10 usd turns into .01 LINK pretty quickly when demand far exceeds supply.

[Anonymous No.16020857]

But when will it be implemented?