Chainlink (LINK) recently had over $100 million worth of tokens unlocked, but this time it’s different. The unlocking of 11.25 million LINK from two uncirculated supply addresses raised eyebrows in the cryptocurrency community. However, unlike traditional token unlocks that often lead to market volatility, this event may have a different impact.
Chainlink had previously stated that these tokens from the non-circulating supply would be used for subsidies, such as oracle rewards for nodes. This aligns with their long-term token issuance program, which aims to diversify their treasury for development and provide LINK as rewards to nodes.
Rory Piant, Chainlink’s Community Director, shed light on the inflationary aspect, explaining that the projected 12-month LINK token launch rate is lower compared to other Web3 projects in the top 100 by market cap. This rate is based on changes in circulating supply over the past year. Piant also emphasized that the annual inflation of LINK would decrease over time, as the issuance rate remains constant.
As with all cryptocurrency investments, it’s important to conduct thorough research and make informed decisions. This information should not be considered as investment advice.