Thread by @ChainLinkGod

@lastmjs @alexgausman @Foobazzler @antiprosynth @reeeatine @KyleSamani While Chainlink does heavily rely on the Ethereum network today, $LINK is far from correlated with $ETH, in fact it's the opposite

The economic bandwidth available with $ETH would be completely uncorrelated with the growth of Chainlink, and this is a problem for multiple reasons

@lastmjs @alexgausman @Foobazzler @antiprosynth @reeeatine @KyleSamani As Chainlink adoption grows, the tokenomics will directly cause the token price to rise, increasing the economic bandwidth to enable more adoption, it's a positive feedback loop that wouldn't exist using $ETH
medium.com/understanding-…

@lastmjs @alexgausman @Foobazzler @antiprosynth @reeeatine @KyleSamani Having VCs subsidize the network would centralize control and is completely non-sustainable, having an allocation which can be used for growth is a huge war chest that teams like Synthetix has proved to be essential to adoption, $LINK is the kickstarter and enabler of growth

@lastmjs @alexgausman @Foobazzler @antiprosynth @reeeatine @KyleSamani I love Ethereum, but the reality is that mutliple blockchains will indeed exist in tandem, we can't ignore that

Those chains might use Ethereum as a hub but they will still need their own oracle solution for their SCs especially for permissioned corporate chains and CBDC chains

@lastmjs @alexgausman @Foobazzler @antiprosynth @reeeatine @KyleSamani The token enables self-sovereign security so that the collateral is tied to the health of the CHAINLINK network, if a major oracle attack occurs, $LINK collateral will crash in price as people lose confidence, this wouldn't be true for $ETH, meaning attacks are cheaper

@lastmjs @alexgausman @Foobazzler @antiprosynth @reeeatine @KyleSamani You can't build a network from nothing, the $LINK token is critical for bringing together all the different stakeholders under the same roof with a vested interest in the OVERALL health of the network, not just their own collateral

$LINK is what makes Chainlink work

@lastmjs @alexgausman @Foobazzler @antiprosynth @reeeatine @KyleSamani There's a reason why haven't seen an oracle solution that uses $ETH as collateral, it's not sustainable, there's no built-in subsidy, it would put an upper bound on growth, it wouldn't be blockchain agnostic (key for corporates avoiding lock-in), and enables network effects

@lastmjs @alexgausman @Foobazzler @antiprosynth @reeeatine @KyleSamani Data providers can now sell their data to every DLT through a single oracle solution

The network effects from this is huge, it's a positive feedback loop that drives more adoption, clients attract clients and we've already seen this cascade starting, Tezos just joined today

@lastmjs @alexgausman @Foobazzler @antiprosynth @reeeatine @KyleSamani And I'm not trying to shit on you by any means, I appreciate the discussion, tokenomics is definitely not obvious at first glance, but it's not about one fact or another, it's about all the advantages in tandem which is what makes this work and is what is driving growth