[GF: Phase 0 Proposal] Chainlink

Project Name: Chainlink
Author Name: Chainlink Team
Defillama TVL (at snapshot): $0M
Transactions/day (at snapshot): 2,593
Tier: 2
Optimism Native: No
Number of OP tokens to claim: 1,000,000
L2 Recipient Address: TBD

Token distribution proposal

The Chainlink Network is a protocol that supports the creation of decentralized oracle networks that enable data feeds, off-chain computation, and cross-chain messaging on and between blockchain networks. The oracle nodes are run by Chainlink Node Operators (NOPs)—independent entities responsible for deploying onto new blockchain networks, sourcing high-quality data, and providing highly secure off-chain services to consumers with high uptime and reliability.

Chainlink NOPs are rewarded for participating in the Chainlink Network based on the number of services and updates they support. It is proposed that the OP tokens will be rewarded over time to ecosystem participants responsible for Chainlink services and the proper functioning of the Network.

How will the OP tokens be distributed?
The OP tokens will be rewarded to NOPs and other ecosystem participants over time in order to support and encourage building on Optimism. Given Chainlink’s integral role as the industry-leading oracle solution, the dynamics and appropriate incentives to supercharge user growth on Optimism are different from the ones of projects building exclusively on-chain (dApps). With this proposal, we aim to broadly align the interests of the Chainlink ecosystem with the Optimism ecosystem and, in turn, attract more developers/users to Optimism.

How will this distribution incentivize usage and liquidity on Optimism?
The proposed distribution of OP tokens as rewards will a) incentivize ecosystem participants to provide secure Chainlink services; b) support the Chainlink community’s involvement in Optimism governance; and c) provide additional incentives to use Optimism.

Chainlink was one of the first set of protocols to deploy on Optimism, helping support the initial growth of its ecosystem projects across DeFi, such as Synthetix. Chainlink also supports numerous other decentralized services that could be deployed on Optimism in the future that may spur the growth of other key verticals on Optimism, such as NFTs, gaming, insurance, and beyond.

Chainlink’s continued support on Optimism will enable developers to innovate and explore novel use cases, creating a greater market of smart contract value. Chainlink ecosystem participants will have an additional incentive to use projects building on Optimism due to the virtuous cycle between user activity and demand for oracle services. Increased user activity results in more protocols being developed, driving the development of additional oracle services.

Why will the incentivized users and liquidity remain after incentives dry up?
The OP tokens may accelerate new Optimism network activity, but we expect organic activity utilizing the Chainlink Network will continue to grow on Optimism after the OP token incentives are used. As Optimism attracts more developers and users facilitated by key Chainlink services, a self-sustaining ecosystem can emerge that may support itself through user fees alone. Chainlink supporting new L1/L2 chains has long been a key driver in helping the new chain bootstrap their growth by increasing their TVL, enabling entirely new categories of dApps, and the ability to show off their unique qualities and projects.

Over what period of time will the tokens be distributed?
The distribution rate depends on the breadth of services supported and market conditions.

How much will your project match in co-incentives?
We don’t anticipate co-incentives at this time.

10 Likes

A strong connection between optimism and chainlink is good for optimism and will distribute tokens in a diversified way to another core part of the crypto ecosystem, so good to support this.

2 Likes

From my experience, Chainlink offers so much value to the dapps I build. I won’t build on a chain they don’t support. It’s obvious to me to align with them. I fully support this proposal.

2 Likes