Can you actually stake chainlink? How are large holders rewarded?

Can you actually stake chainlink? How are large holders rewarded?

Not yet, but its in the work. Look up linkpool.

In this video sergey says SWIFT member banks pay 10-20 million a year for the data the chainlink network would be replacing.

If chainlink save them 50%, that's $5 million. $5 million divided by 1k nodes is $5k per node per year just for this one use. ZeppelinOS is in its infancy and handling $1.5 billion in smartcontract assets. If Chainlink charges .1% of contract value for its services thats 1.5 million a year, so thats another 1.5k a year per node.

These are just some of the uses; there are many others of considerably greater value. A good ROI is like 5% for a node operator which means they'd be "staking" like $100k worth of link per node to do that at these very conservative estimates for the money to be gained operating a node.

soon. Only question is how many months till we see massive gains again

The 5% ROI is year based?

You can stake Chainlink in two ways: on the node itself (to help set priority) and on prospective contracts.
For instance: a client puts out a contract for nodes to "bid" on. The nodes "stake" Link onto the contract, and then the client chooses one of the nodes.
The losing nodes get their staked Link back, but the winning node's Link remains tied to the contract until it is fulfilled, at which point he gets his staked Link back, plus the agreed fee in Link.
However, if that node fails to meet all of the pre-set conditions (e.g. foul play), he loses (part of) the Link he staked on the contract.

This all depends on the type of contract however. There will also be contracts that require zero Link staking, be it on the node or on the contract.
What contracts will or will not require Link staking, and how much, is all going to be determined by the forces of the free market that is the Chainlink network.

This will result in a very diverse ecosystem of nodes, with small-time bottom feeders that stake zero Link, all the way up to big-time whale nodes that are in a Link staking arms race with other whale nodes to snatch up high-profile contracts from the likes of Swift for instance.
And everything in between.

It'll be like an RPG, where you start out as a bottom-feeding node grinding on scraps, and level up all the way to Superwhale.
Except instead of just getting smellier with each level up, you get richer as well.

This sounds pretty risky though. If I stake my link on a contract that's not fulfilled I'm going to lose out massively.

Why would you stake your Link on a contract and then not fulfill that contract?

Also, this is how everything ever works. If you don't deliver what you promised, there are consequences.
If you think this concept is "risky", then please remove yourself from this planet.

No, linkpool is a scam by the same guy who made the tonydumper scam
He wants free of charge stinkies

Well my impression was that you stake your link as a node so other people can bid, accept and fulfill contracts.

yes

We need more threads like these. Veeky Forums has turned into a low IQ pump and dump shitcoin fest. Didn't use to be anything like that.

Let's assume you are a node.
1) you can stake Link on your node itself to help determine your priority.

2) you can stake Link on certain contracts that you would like to handle
----2.1) you are not selected; you get the Link back that you staked on that contract
----2.2) you are selected:
---------2.2.1) you do a good job; you get your staked Link back + agreed fee in Link
---------2.2.2) you do a bad job; you lose (part of) your staked Link

Doesn't that separate the staking from the fulfillment?

I see. So there is nothing like just staking a ton of Link and passively generating income? You'd have to select contracts to stake on, actually fulfill those contracts and then get your reward.

>So there is nothing like just staking a ton of Link and passively generating income?
I guess the Linkpool thing is kind of like that.
You throw down some Link and they do all the work.
It appears that the Linkpool thing itself will run on smart contracts, so everything should be clear and in the open as to what happens to your Link if they fuck up.
So due diligence will be required.

>You'd have to select contracts to stake on, actually fulfill those contracts and then get your reward.
I guess this process could be automated to a degree, like with scripts or something.

that's pretty much how they designed it, but linkpoolio is trying to make it easy as fuck to just dump your LINK in a pool and receive rewards. no advanced technical knowledge needed.

Thanks for the information, it puts the whole process into a bit more perspective.

I'm not too keen on using aggregates like Linkpool because it introduces a massive risk both in terms of security and them just running with the money somehow.

However, it's unlikely that I'd actively select and fulfill contracts. But I don't truly understand what a Link contract would look like and how it is fulfilled.

>I'm not too keen on using aggregates like Linkpool because it introduces a massive risk both in terms of security and them just running with the money somehow.
Only if you don't do your due diligence.

In principle, this is no more risky than paying into a retirement fund or investing in stocks.
If someone fucks up, you lose your money. That's how everything works.

>But I don't truly understand what a Link contract would look like and how it is fulfilled.
Smart contracts are literally "if X happens at Y time, that results in Z".
You could write smart contracts in Notepad, so to speak.
What you're doing as a Chainlink node is merely translating external data into blockchain-readable data, so that (some of) the variables of the smart contract can be monitored in order to trigger the contract's execution at the right time and under the right conditions.

>it introduces a massive risk both in terms of security and them just running with the money somehow.

if only we had something like smart contracts.......

That's exactly how they're implementing it actually. Linkpoolio won't be controlling your funds at all. They'll be locked up in a smart contract that can only be withdrawn by you, at any time.

Yeah, that was his point actually.

It's pretty funny when you think about it; the reason smart contracts will transform the world and why even the legacy finance world is foaming at the mouth about smart contracts, is because they offer a level of security that has never before been seen in the world of finance.
To see people like OP having doubts about entering into smart contracts (like the Linkpool thing) because of security concerns is pretty amusing.
Sure, you might still get scammed, but at least the smart contract nearly completely closes one of the main attack vectors for scams or dispute.

I don't understand how smart contracts work at all. Explain to brainlet.
Let's say there is some code with conditions and when these conditions are satisfied - some actions, like "send money to this account" are executed. And this code is executed on some random node. But why can I trust execution of my contract to that node? Maybe it is interested in fooling me, and will send money without satisfied conditions.

I completely don't understand how it works, explain to brainlet pls.

me too. what type of work would have to be successful for a "completed" or "successful" contract finish? 1 hour per day? 8 hours per day? what would you actually have to DO, yourself? so confused by this.

There can be no tampering for the same reason there can be no tampering with Bitcoin: the blockchain (or distributed ledger or whatever you want to call it).
This is essentially a decentralized way of storing the same document containing all proofs ever generated within that blockchain.
If you tamper with one copy of that document, all of the other copies (held by independent parties) will contradict your version.
If you lose your copy of that document, all of the other copies (held by independent parties) have back-ups and you can get your copy back in no time.
If your copy of that document gets hacked, all of the other copies (held by independent parties) will contradict your hacked version.

In the case of Chainlink, this blockchain on which the smart contract itself is executed could be Bitcoin, ETH, Hyperledger (in the case of Swift), or any other blockchain or DLT for which an adapter is created.
The Chainlink network itself does not process the smart contracts proper, only the oracle computations.

The banks for instance are lusting after this decentralization, because it beats the snot out of the old way of doing things: storing and processing shit on centralized servers and databases, which become all but useless in case of tampering, malfunction, hacking, ...
This is why Chainlink is such a good idea; centralized oracles are single points of attack or failure, so putting a centralized oracle in between the user and the blockchain defeats the purpose of the blockchain entirely.

...

I wouldn't worry about it; you don't sound like you won't be operating a node, and honestly you'd probably screw up sending your link to linkpoolio so don't do that either.

Thanks, I expected this answer. At least I know how blockchain works in bitcoin.

>At least I know how blockchain works in bitcoin.
Well then you understand why smart contracts are so secure; the conditions and execution are recorded for instance in the Bitcoin blockchain.

Hard work pays off