Chainlink Launches LINK Staking v0.2 General Access, But There’s a Catch

Decentralized oracle network Chainlink has officially launched the General Access phase of its Staking v0.2 program, allowing anyone to participate in securing the network and earn rewards.

As a background, Chainlink staking v0.2 is the latest upgrade to the protocol’s native staking mechanism. The v0.2, which comes with an initial expanded pool size of 45 million LINK (representing 8% of the token’s circulating supply), started with a Priority Migration period on November 28 and entered Early Access on December 7.

The Early Access lasts four days before entering General Access, where participants can stake up to 15,000 LINK tokens. The current annualized reward rate for staking LINK is around 4.32%.

Staking v0.2 Enters General Access With a Twist 

The latest entry into the general access phase comes with a twist. As stated by Chainlink, new participants will have to wait for existing stakers to withdraw their LINK tokens before space opens up.

“With the community pool having been filled during Early Access, anyone can stake LINK whenever an existing stake completes a withdrawal and pool space becomes available,” Chainlink said in a tweet.

#Chainlink Staking v0.2 has officially entered General Access.

With the community pool having been filled during Early Access, anyone can stake LINK whenever an existing staker completes a withdrawal and pool space becomes available.https://t.co/Gdt5FiQmOR

— Chainlink (@chainlink) December 11, 2023

This means that while anyone can express interest in staking LINK tokens in v0.2, their chance depends entirely on the actions of others. This dependence creates an uncertain environment for potential participants without guaranteeing they will ever find an available space. 

The v0.2 withdrawal process further adds to this complexity. As stated in a blog post, while stakers can withdraw their staked LINK from Chainlink Staking v0.2 at any time, there is a 28-day cooldown period before they can access their funds. 

Once this cooldown period is complete, they have a seven-day window to claim their LINK. However, if they miss this window, their tokens automatically re-enter the v0.2 pool, potentially extending the wait time for others.

While the launch of Chainlink Staking v0.2 General Access is a positive development, the limited availability of staking space presents a potential hurdle for new participants. Only time will tell if Chainlink will implement changes to address access concerns and ensure an inclusive staking experience for all participants.