The purpose of Chainlink is to get real world data (like current price of gold) onto the blockchain. Someone that wants the price of gold will pay a chainlink node operator to provide it to them. When you stake Chainlink you deposit it onto a node, if the node makes money from selling data you keep a portion, if the node provides incorrect data the node will be penalized and you forfeit a percentage of your Chainlink.
When you stake Chainlink you earn a fraction of however much the node operator makes. Different node operators pay out varying amounts, nodes with more demand will generate more rewards. LinkStake is a tool that helps you effectively stake between multiple nodes.
When you stake Chainlink you are putting your tokens as collateral, if the node you picked provides wrong information according to the service agreement you will lose a portion of your tokens. Since this is a new technology there may also be many unforeseen risks.
Anyone who owns the Chainlink token can stake it. Keep in mind depending on where you live staking rewards may be taxable in the form of rental or interest income. Make sure cryptocurrency is legal in your country before starting.
First off you need to get some Chainlink. There are many ways to do this but they all involve some levels of risk. Chainlink is a risky and volatile asset and could drop in price suddenly. Additionally you need to store your Chainlink in a wallet that you control completely, such as Metamask or Ledger.
A Chainlink Node operator is an entity that provides data to the Chainlink network. An example one is Everstake, a node operator that provides the current USD price of Ethereum. Once staking is live, they will allow staking on their node. You will be able to put your Chainlink on Everstake and receive a percent of how much money they make.
Deposit your Chainlink with the node operator. The technical details for sending funds has not been described by the Chainlink team. Presumably this will require you to send your Chainlink to a Specific address
Over time you will most likely earn rewards, assuming the node you selected did not incur penalties. You can keep these additional funds on the same node operator or you can withdraw them. The best course of action depends on the specific node and the reward rate for new earnings.
Like most of us, you’re probably wondering when you will be able to actually stake your LINK tokens. Although Chainlink has been released for over a year, staking functionality has not been implemented. No date has been given by the team. The Chainlink team publicly shares their development on pivotaltracker.com. All indicators point to staking being released near the end of 2020.
Here’s a few things you can do to prepare for staking: