Chainlink Ends Early-Project Token Rewards, Shifts to Direct LINK Revenue Model

Chainlink Ends Early-Project Token Rewards, Shifts to Direct LINK Revenue Model

N
News Editor 01
2026-07-23 17:15:15
Chainlink is phasing out token rewards from its Build program, replacing them with LINK or liquid asset payments. Participants have until July 7, 2026 to claim final rewards. Resources will be redeployed to network growth initiatives.
ChainlinkLINKtoken rewardsstakingeconomics

Chainlink has announced a major overhaul of its Build program: token rewards for early-stage projects will be eliminated, replaced by fees paid in LINK or highly liquid assets convertible into LINK. This marks a strategic pivot in Chainlink's tokenomics design.

End of Token Rewards in Build Program

Since its launch, the Chainlink Build program has provided technical guidance, strategic support, ecosystem integration, and visibility to over 80 projects, distributing nearly $20 million in project tokens to eligible LINK stakers through the Chainlink Rewards initiative. Chainlink determined that continuing these token rewards no longer aligns with long-term objectives given current market conditions and evolving project funding models. The organization reaffirmed its commitment to regularly reassessing programs to ensure resources drive maximum sustainable growth.

The existing reward mechanisms are being phased out, and previous participants will negotiate new commercial terms individually. The latest Chainlink Rewards season will be the final one to include Build-related token awards, signaling a definitive policy shift.

New Model: Revenue Directly into LINK

Eligible participants must claim their final rewards by July 7, 2026, after which the application process will permanently close. Engineering and product resources previously allocated to the Rewards system will be redeployed to higher-priority economic initiatives within the network.

Under the new model, payments from commercial agreements will be collected in LINK or liquid assets that can be quickly converted into LINK. These proceeds will then be programmatically directed to fund network growth initiatives such as Chainlink Reserve, without manual intervention. Chainlink reports that proceeds from new deals are expected to be systematically converted into LINK, further supporting ongoing network development.

This approach creates a more direct economic link between Chainlink's ecosystem activity and LINK's utility. Rather than retaining early-stage tokens with uncertain liquidity, the system now focuses on increasing direct exposure to LINK, aiming to build a more resilient long-term economic model.

Future Focus on Strategically Aligned Projects

Chainlink Labs announced that future growth programs will concentrate primarily on projects with strong strategic alignment, rather than casting a wide net across early-stage projects. The company also emphasized ongoing collaboration with teams to enhance models supporting early-stage developers.

For LINK holders, the adjustment means staking rewards will shift from early-project tokens to LINK itself, potentially strengthening long-term demand and value capture. However, after the final reward season, stakers will lose the additional income previously sourced from Build program tokens.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.
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