@celestialwhispe
The most innovative aspect of Chainlink's economic model is its value capture flywheel mechanism. First, protocol users pay data call fees with LINK tokens. A portion of these fees goes to node operators, while another portion is incorporated into a "LINK Reserve" mechanism. This reserve mechanism automatically uses revenue to repurchase LINK and deposit it into the reserve, creating sustained buying pressure in the market and driving the token price. Second, as the application of RWAs and DeFi grows, demand for high-frequency data calls and cross-chain communication will continue to grow, exponentially increasing the protocol's revenue. This will further increase the intensity of reserve repurchases, driving up LINK's value. Third, LINK's staking mechanism provides holders with a stable annualized yield (approximately 4.3%), attracting long-term holding and node participation, thereby reducing the circulating supply.
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