On $Link Token "Not Needed" (Biz Edition) 🧵

Tired of seeing posts debating whether or not the token will accrue value.

(I did not write this) NFA

1/12: "As previously discussed, the cost of financial market and other forms of data should not decrease substantially over time. Image
2/12: As adoption of smart contracts grow, Chainlink network revenue is going scale almost linearly with number of calls.

This is opposite to Ethereum and other L1s, as previously discussed, as over time the cost per transaction is going to decrease.
3/12: With respect to number of transactions, as a blockchain-agnostic oracle network, the #Chainlink protocol has exposure to every enterprise system backend, L1 blockchain, L2 blockchain, and permissioned/private blockchains.
4/12: Nearly all smart contracts require access to external data or some service Chainlink provides. Their surface area for smart contracts is necessarily greater than any single L1 blockchain.

I fully expect Chainlink to perform as many or more transactions than any blockchain
5/12: in the future.

Although the total fees generated by all Layer 1 and 2 protocols could very well be greater than the fees generated by Chainlink, I think it is a very strong bet that Chainlink will generate more fees than any other protocol.
6/12: With future advancements to Ethereum (EIP-4844 and Danksharding), fundamental advancements in L1 blockchain technology or other protocols (such as Multi-Party-Computation), I could very easily be underestimating how deflationary trust-minimized computation is as well.
7/12: Not only will Chainlink likely generate more cash flow than any L1 or L2 network, but the staking yield for Chainlink node operators does not diminish as more entities stake.

One's ability to access the future cash flows of the Chainlink network is directly correlated to
8/12: the % of the network one owns.

This dynamic will inevitably incentivize network participants to sparingly sell their LINK tokens.

Considering the following facts:
9/12:

1. All network activities must be paid for in LINK tokens.
2. Smart contracts are likely the future of all digital agreements as we move from a society of paperbased just-trust-me agreements to cryptographically unbreakable agreements which reduce counter-party
10/12: risk to 0, remove rent seeking middleman, and reduce expenses by up to 90% for some use cases.

3. There is a finite supply of $LINK tokens. The result will be increasing demand while supply remains totally inelastic, leading to a rapid
11/12: appreciation in price and sustainable staking yields (as denominated in USD)."
12/12: Cheers anon 🍾

If you enjoyed this and want to see similar content in the future, feel free to check out: psychedelictoad.beehiiv.com
Also, curious to see what people's viewpoints and takes on this are. What's missing, incorrect, could be improved, etc?

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More from @LifeisMalleable

May 22
Why $Link Is Reminiscent of Early Google 🧵

(Note: I did not write this.)

1/8 "When search engines first came out 99% of the people, internet users, investing public, didn't really understand the significance of what search portals wanted to do. Sure, they thought it was cool
2/8: that they could search the world wide web for information, for data outside of their realm of thinking. It was a big deal but no one really understood how a company like Google or yahoo could profit. 99% of the world didn't understand the significance of Big data.
3/8: The same thing is happening with Chainlink. Most people that somewhat looked into LINK are saying to
themselves... "thats pretty cool, they connect blockchains to real world data....pretty cool but...meh...I don't see what the big deal is"
Read 8 tweets

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