#677) to the ERC20 (Ethereum Request for Comments) token contracts. Read the full ERC677 standard proposal HERE.
The LINK token is a "Utility Token". Utility tokens Utility tokens are tokens that have a form of functionality within the blockchain network they inhabit. At their core, utility tokens allows the owner to perform a certain action on a given network. Essentially, utility token unlocks a product, service or even both for the holder. Utility tokens can serve any purpose the developer has in mind and the tokens are required to access the service or product on the blockchain ecosystem. While coins (payment tokens) are seen as digital money, utility tokens can be compared to parts of software.
The LINK token is used to pay Chainlink node operators for their oracle services (on-chain data aggregation and submission & off-chain computation services). In addition, once Chainlink staking goes live, Chainlink node operators will be able to deposit a specific amount of LINK as collateral in order to be eligible to service specific requests. This was first outlined in the original whitepaper.
REVIEW Chainlink nodes get paid for providing oracle services in the form of user fees. Additionally, as part of a future cryptoeconomic staking model, LINK tokens can be staked as collateral to further incentivize honest oracle services. The staked LINK collateral can be subject to slashing in the event of poor performance or malicious behavior by the node, such as withholding data/computation, not delivering data on time, or supplying data that deviates a certain percentage from the DON’s overall median value.
At launch, 35% of LINK tokens were sold, establishing an initial circulating supply of 350M.
Another 30% (300M LINK tokens) were allocated to LINK's parent company (SmartContract.com) tokens were spent on hiring, operations and development.)
The last 35% (350M tokens) are held in reserve to pay incentive rewards to network participants like node operators.
ERC stands for Ethereum Request for Comments. Ethereum Request for Comments is an official protocol for implementing improvements to the Ethereum network. ERC standards are created by the Ethereum community developers. The developers make a document describing methods and rules that they think would improve the Ethereum ecosystem. If the core developers and community agree with the proposal, it becomes a standard.
ERC20 Tokens The ERC-20 is a Token Standard that implements an API for tokens within Smart Contracts.
It provides functionalities like, to transfer tokens from one account to another, to get the current token balance of an account and also the total supply of the token available on the network.
ERC677 ERC677 is short for ERC: transferAndCall Token Standard #677. Steve Ellis (co founder of Chainlink) opened the ERC677 issue on Jul 20, 2017. ERC677 tokens inherit functionality from the ERC20 token standard, however ERC677 also allows token transfers to contain a data payload. Essentially it is an ERC20 token with the additional TransferAndCall functionality.
ERC677 tokens can be stored in any ERC20 compatible wallet. The official ERC677 standard proposal can be found HERE.
Any wallet that handles ERC20 tokens can store LINK tokens. The ERC677 token standard that the LINK token implements still retains all functionality of ERC20 tokens.
The LINK token is an ERC677 token that inherits functionality from the ERC20 token standard and allows token transfers to contain a data payload.
It is used to pay node operators for retrieving data for smart contracts and also for deposits placed by node operators as required by contract creators.
Chainlink token address: https://etherscan.io/token/0x514910771af9ca656af840dff83e8264ecf986ca
Chainlink contract creation: https://etherscan.io/txs?a=0x514910771af9ca656af840dff83e8264ecf986ca&f=5
Contract creation transaction:
Etherscan token page: https://etherscan.io/token/0x514910771af9ca656af840dff83e8264ecf986ca
Date created: Sep-16-2017  Max Total Supply: 1,000,000,000 LINK