Chainlink Tokenomics

The guide to understanding a unique asset class $LINK

If you are looking for a guide to fully understanding what Chainlink ($LINK) is, I will refer you to a different article written by a valuable member in our community. The link will be located at the bottom of the article. If you have any questions my social media link is located at the bottom of the article. I encourage you to reach out, even if I do not respond directly, I will try to answer questions in future articles.

Please read my first article first to have a more basic understanding: https://medium.com/understanding-basic-chainlink-tokenomics/the-basics-bb6fca307703

The tokenomics of $LINK need to be analyzed to understand why this asset is considered such a rare long-term hold. We have the basics:

- Appreciation due to a finite supply

- Utility due to use-case

- System of compounding interest

I drew a basic model of supply and demand with arbitrary price and quantity points. This model is based on the assumptions of: Staking being live, and this is a period of opening adoption. Demand (D0) and Supply (S0) are the starting points at a price (P0) and quantity (Q0). Let us assume we have three main parties interested in the token: Corporations, investors, and node operators (note: node operators…