LINK Reserve Launched by Chainlink to Support Ecosystem Growth

Chainlink has launched the Chainlink Reserve, an on-chain mechanism that automatically converts both on-chain and off-chain revenue into LINK tokens to support long-term network growth and sustainability, the company announced Thursday.

The reserve is funded through a system called Payment Abstraction, which enables users—both enterprises and decentralized applications—to pay in assets like ETH or USDC. These payments are then automatically swapped into LINK using Chainlink’s infrastructure and decentralized exchanges, with the resulting tokens deposited into the reserve.

According to Chainlink, this reserve is designed to steadily accumulate LINK over time without requiring direct purchases from users. Revenue sources include fees paid by institutions for services and on-chain activity generated by decentralized protocols using Chainlink oracles.

“The launch of the Chainlink Reserve marks a pivotal evolution in Chainlink,” said co-founder Sergey Nazarov, emphasizing the growing enterprise demand that has already generated “hundreds of millions of dollars in revenue.”

As of launch, the reserve holds more than $1 million in LINK. The company noted that no withdrawals are expected “for multiple years,” positioning the reserve as a long-term pool to help secure and scale the protocol.

Chainlink also announced a real-time dashboard at reserve.chain.link and published the reserve’s smart contract on Etherscan for full transparency.

Major enterprise partners—such as Mastercard, which collaborated with Chainlink to enable crypto purchases on-chain, and JPMorgan, which leverages Chainlink tech through its Kinexys payments system—are already contributing to the protocol’s growing revenue base.