Chainlink is testing a new deflationary mechanism for $LINK by burning a portion of network fees.
When dApps use Chainlink oracles to get data, they pay the fee in $LINK. Instead of all of this fee returning to the market, a portion is burned permanently, reducing the circulating supply.
Burning the token makes LINK more scarce, and if demand for Chainlink continues to grow, the remaining LINK value can benefit from the supply-demand equation.
This is an important step forward in tokenomics, complementing staking, CCIP, and Chainlink’s new products.
This model creates a positive long-term incentive for holders, although the burn rate is subject to change and will need to be monitored.
Not financial advice — but a move that shows Chainlink is serious about building sustainable value for the ecosystem and the LINK token.
LINK
14.23
-1.18%