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2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance


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49454640 No.49454640 [Reply] [Original]

Why is Chainlink such a contrarian protocol? No wonder it's so misunderstood when it does everything so differently from the rest of the market.

With 99% of protocols staking out there, the rewards start high to attract users and then get lowered over time. They're all short term ponzi musical chairs, unsustainable and artificial.

Chainlink doesn't need this since it ALREADY has the users. They did all the heavy lifting before tokenomics, when others launch lazy tokenomics hoping it'll attract usage.

Chainlink rewards will start at <5% but will easily grow beyond that, in a sustainable manner. It's simply unheard of, absolutely industry shattering and as a result nobody can even wrap their brains around it.

The initial plan, a few months in, is to reward 5% for 75M staked. Out of ~400M circulating. For one (1) single feed. Which will later be scaled up to all feeds.

There are ~1000 feeds. So you do the maths. They want the whole supply staked.

There are at least 4 revenue verticals mentioned. Incentive wallet emissions, user fees + the new partners pool reward program + a premium loss protection service fee. That's still all only for initial price feeds rollout.

Then comes VRF etc. We still have zero information about how ccip could shift nodes to direct fee capture for bridged assets, how ffs could capture major execution layers fees instead of mev, etc. These are even bigger revenue sources and the plan is to roll them out in phases, once total monopoly is secured and adoption is the norm.

It will take years for chainlink to even be understood by so called experts at this point. It's all very reminiscent of Schmidt keeping Google profitability hush hush for so long, or how Bezos had to reassure shareholders that all the key adoption/profit metrics were rocketing while stock was plummeting following the dot com bust. Market participants can't see the forest from the trees without years of hindsight, despite major unique players hiding in plain sight.

>> No.49454738

I know we've been hyping this for years and for a while it has seemed stagnant but it's just mind melting to me what a behemoth of a protocol they're building towards. Anyone sleeping on this instead of taking the time to research and properly understand every layer to this will severely regret it a few years from now. In the end, market speculation will have no choice but to violently catch up with the mathematical inevitability of successful tokenomics. They're taking the slow lane but doing everything so right without screaming from the rooftops but instead staying stealth for as long as possible, it's the anti LUNA the anti VC and other bullshit approach. The supply is fixed, that alone should keep you intrigued. In hindsight it'll all seem obvious.

>> No.49454825

>>49454640
18% of the circulating supply will be staked for the USD/ETH feed alone. Was it Jonny who predicted 99.9% staked within 2 years? Seems very realistic

>> No.49454880

>>49454825
75/1000 still incredibly bullish. Unfortunately patients still needed.

>> No.49454986

>>49454825
It's really crazy but it makes sense they'd want to incentivize as much of the supply getting staked, which would then translate to ccip being able to be backed by billions even with only a basic linear model. Then once you have whole supply + super linear model kick in, oh baby, that's trillions dollars security guaranteed and who the fuck could compete with that at this point, and then complete cross chain abstraction layer, direct value capture monopoly will rake in fees like a money printer. They're going to swallow the entire market whole within a 5-10 years horizon. Impatient investors will never be able to wait that long when it's the most obvious opportunity of a life time.

>> No.49455032

>>49454880
75/1000 for a single feed. There are 1500 projects using link already across hundreds of feeds.
CCIP hasn't even been launched. We're going to make it.

>> No.49455084

Guys, tell me, i am a poorfag but I have $1000 to spare on a coin. Shall I buy $1000 of LINK rn?

>> No.49455117

At some level I think people are a little disappointed with the news that came out yesterday because they were expecting them to say that chainlink will stake everyone and it will now deliver off-chain blowjobs. but for the reasons you pointed out it was very bullish, but it will take a few years to unfold. One way to look at it is that right now is probably around as low as Link will go, and only has upside from here. Link will break the BTC "cycle" shit (with etherium), and will no longer be attached to it's performance. very bullish.

>> No.49455133

>>49454640
I really wish every Link thread could be like this, but the discord fuckheads just won't stop fudding at this point.

>> No.49455152

>>49455084
I have 10k but if I had none I'd be dumping money in to it. Yes I recommend you buy it. I believe LINK will make us all rich. I could be wrong though, DYOR.

>> No.49455163
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49455163

>>49454640
Can you feel it, anon. Something in the air...

>> No.49455171

>>49455133
And I wouldn't recommend inviting them back in.
Excited to see only a squibble instead of a shart this morning. Hope we can capture more movement today as people start to figure out why this staking isn't just about the APRs

>> No.49455370

>>49454640
Obviously this is the best way for the team to roll out staking, and I can see the logic in it. It's a flawless plan. The only thing that concerns me is the small pool, which, even at 75M is still way low and many of us won't get to stake the majority of our Links. That said, the token price could rise a lot and that would compensate towards the imbalance. The thing that interests me now is the PGP programme. I hope we get to hear more about this at Consensus. I've so far steered clear of defi and I'm sure I'm not the only one, after the Aave liquidations and things like Luna. I'd be more inclined to participate in a programme which had the approval and oversight of Chainlink. I imagine Aave will be involved as Link seem pretty tight with them. Anyone else any thoughts on the PGP? I'm going to ignore any fud posts and I recommend you anons do too. They're not worth it.

>> No.49455374

>>49455117
Yes I understand people being disappointed because everyone is impatient and immature, with unrealistic expectations due to so many scams offering unsustainable inflationary bullshit minted out of thin air, but for me the whole vision outlined is incredibly bullish and shows they know exactly where they're going for long term sustainability, how to continually maximize revenue, generate adoption and enhance security, all for the sake of an inevitable, unstoppable monopoly, a profit accumulating snowball without brakes. There's a lot in the blog post that's not spelled out but if you know how all the other pieces would fit, you understand they have a huge overall strategy designed for a ruthless monopoly and a massive snowball effect. If you only read about individual parts, it may not seem like much but when you have the big picture, it's unironically mind melting. INTJ autists who have been following link for years will understand what I mean, it just clicks, you get a light bulb moment, you see the big picture not just pieces of a puzzle, meanwhile tourists will not even be able to discern if my autismo rant is just nonsense techno babble or how it's different from jeet bot shilling.

>> No.49455498

>>49454640
How can they do 5% off of one feed?

They are using their 350M that they’ve been hoarding. This will slowly inflate the circ supply.

>> No.49455511

It's just the amount of text needed to rationalize the investment, just look at it. It's price data and random numbers, is this worth billions? No. Is there growth potential? No, they are already integrating shitcoins because there is nothing left to do. Is there a moat that hinders competition? Lolno, just copy paste the code, easy.

>> No.49455610
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49455610

The world is changed
I feel it in the water
I feel it in the earth
I smell it in the air
Much that once was is lost
For none now live who remember it