Chainlink has launched a new on-chain reserve mechanism aimed at fueling long-term network sustainability and driving demand for its native token, LINK. The initiative, called the Chainlink Reserve, will accumulate LINK using revenue generated from both enterprise clients and decentralized applications, the company said in a Thursday announcement.
The reserve is powered by Payment Abstraction, a system that enables users to pay for Chainlink services in a variety of tokens—including ETH and USDC—instead of LINK directly. These payments are then automatically converted into LINK through Chainlink’s network services and decentralized exchange integrations.
The reserve has already amassed over $1 million in LINK and is designed to grow steadily over time. Chainlink stated that it does not anticipate any withdrawals for several years, reinforcing its intent to use the reserve as a strategic foundation for network expansion.
“The launch of the Chainlink Reserve marks a strategic milestone,” said co-founder Sergey Nazarov. “It’s a self-reinforcing mechanism that transforms growing enterprise adoption and on-chain usage into lasting value for the Chainlink ecosystem.”
Chainlink’s infrastructure is already used by major financial institutions. Mastercard has partnered with the network to enable on-chain crypto purchases, and JPMorgan’s Kinexys platform integrates Chainlink to facilitate tokenized payments on Ondo Chain.
In addition to the announcement, Chainlink released a live dashboard at reserve.chain.link, allowing the public to monitor the reserve’s LINK balance. The associated smart contract is also available on Etherscan, adding transparency to the reserve’s operation.
The reserve is seen as a step forward in aligning revenue generation with token economics—converting external demand into native token accumulation to secure and grow the protocol over time.
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