LinkPool is a prominent entity in the Chainlink ecosystem, providing tools and services that foster the growth and security of Chainlink’s network. It was created by Chainlink community members Jonny Huxtable and Mat Beale to simplify Chainlink staking for average users. Their services include operating a Chainlink node, a staking pool, and other products aimed at oracle operators and Chainlink staking.
LPL and SDL Tokenomics
The LinkPool Token (LPL) was introduced through a crowdsale in 2018, raising around 705 ETH. Initially, LPL did not conform to the ERC20 standard and had several limitations, such as lack of visibility in the DeFi ecosystem and liquidity issues. To address these, LinkPool redesigned both the token and platform. LPL tokens allow holders to stake in the LinkPool platform, receiving a portion of the fees generated by the company’s services and an allowance token (linkLPLA) for future staking. The total supply of LPL tokens is 100 million, with 75 million owned by the LinkPool team. The income generated from LinkPool’s products and services is distributed among LPL stakers.
Transition to Stake.Link and SDL
Stake.Link, a liquid staking platform built on Chainlink Economics 2.0, represents a broader vision beyond LinkPool, aiming to be a definitive protocol for Chainlink staking. The transition from LPL to Stake.Link’s platform token, SDL, marks a strategic shift. SDL performs key functions like enabling governance, facilitating reward distribution, and offering priority staking access. The migration ratio from LPL to SDL is 1:0.5, with specific vesting schedules for the LinkPool team and community holders. SDL also plays a pivotal role in the governance and operational aspects of the Stake.Link platform.
Challenges and Community Engagement
LinkPool’s journey has not been without challenges. Financial reviews and market conditions led to critical decisions like deprecating the LPL token for business sustainability. This decision, alongside the launch of stake.link and associated changes in tokenomics, received mixed reactions from the community. In response, LinkPool is committed to increasing transparency, providing detailed documentation, and proposing changes based on community feedback, including a Community SDL Airdrop and protocol modifications.
Future Directions and Collaborations
LinkPool continues to innovate and expand its contributions to the Web3 space. It announced support for the Decentralized Infrastructure Network (DIN) in late 2023, bringing its expertise in decentralized RPC solutions. Furthermore, LinkPool’s brand evolution, including a strategic shift in services and focus, signifies its commitment to shaping the Web3 ecosystem and facilitating the integration of a Web3-integrated global economy.