What are LinkPool tokens? How did everything start?

What is LinkPool and what are LinkPool tokens

LinkPool is a project that was born thanks to two Chainlink community members (Jonny Huxtable and Mat Beale) who started talking through the now defunct Chainlink Slack channel and realized that Chainlink staking was not going to be easy for the average Joe, due to the fact that it is much more difficult to manage a Chainlink oracle than to manage a PoS or PoW blockchain node. So they decided to come up with a project that would allow users to deposit LINK collateral on the LinkPool node in a secure and decentralized way so that they could experience the benefits of staking, without having to be exposed to most of the risks involved.

LinkPool logo

Between April 15, 2018 and July 31, 2018 LinkPool opened a crowdsale to raise funds in which they offered 25% of their company for sale in the form of 1000 tokenized shares in exchange for 1000 ETH. Thanks to said crowdsale they managed to raise ~705 ETH, however they decided to proportionally distribute the "unsold” portion among those who had contributed ETH to the crowdsale. For several reasons, this token didn’t conform to the ERC20 token standard.

New winds blowing
A lot has changed since then, as last Friday, March 26th, LinkPool announced that they had redesigned both their token and their platform. You may be wondering why, and to answer that question, we should first delve into the peculiarities of this former LinkPool token. It was certainly quite particular, as its contract had integrated a biweekly airdrop mechanism, it did not conform to the ERC20 token standard, which is the most common standard within the Ethereum ecosystem.

It also presented additional problems:

  • Lack of visibility within the DeFi ecosystem
  • Lack of liquidity: there used to be a very feature-limited DEX as the only way to acquire LinkPool tokens.
  • Lack of transparency: unless you were very familiar with reading and understanding Ethereum transactions, hashes, input data and block explorers, it was quite complex to know what was happening on-chain.
  • Lack of DeFi composability: there is already an Aave proposal to include LPL as collateral. No doubt proposals to list lpoLINK -the 1:1 derivative LINK token representing your claimable rewards within the LinkPool platform- as collateral in Aave, will also appear over time.

What are LPL tokens used for?
LinkPool tokens serve two purposes:

  1. By staking them in the Staking Contract you are entitled to receive a percentage of the fees collected the company’s services.

  2. Once you stake your LPL in the Staking Contract, you will receive a LinkPool allowance token (linkLPLA) that will determine the amount of LINK you will be able to stake in the LinkPool platform once Chainlink staking goes live. The initial estimates indicate that 1 LPLA will allow you to stake 0.4 LINK, but these limits will progressively increase as LINK collateral demand grows.

There are 100 million LPL tokens in total, out of which 75 millions are owned by the LinkPool team. However those tokens represent their main source of revenue since all the income generated by their products and services will go through the Ownership Contract, that then distributes it among all the LPL stakers.

Infographic created by the -no longer active- Twitter user CryptoSpong3 detailing the number of accounts that held LinkPool tokens on September 15, 2019.

Monetization: Products & Services
What is really interesting about the first point mentioned above and what really confers value to LinkPool tokens -as this was their original purpose- are the various products LinkPool plans to monetize, as well as those that are already being monetized. Said products & services are:

  • One of LinkPool’s main fee generating services is the Chainlink node they operate. LPL stakers are entitled to receive a portion of the rewards generated by the node.

  • The Staking Pool. When staking goes live, users will be able to deposit LINK in the LinkPool node and, in exchange, LinkPool will get a fee of 25% of the profit, that will also be distributed among LPL stakers.

  • Chainlink’s Marketplace. There is a small subscription fee paid in LINK (but pegged to a fixed USD value) in order to list a Chainlink node. In the future they will offer premium services for those oracle operators who want to improve their performance and competitiveness against other oracles.

  • NaaS (Node as a Service) , through which users will be provided with the necessary infrastructure so that their oracles are 100% ready at a technical level and the user only has to worry about managing their client portfolio, the setup of external adapters, the APIs with which they will connect in order to provide high quality data and the jobs they will offer (all through a neat User Interface). This product will require a fixed monthly / annual payment.

  • Trustless staking for all, i.e. they will allow any node to become a staking pool using their security audited contracts in exchange for a percentage fee of their LINK revenue.

  • When available, they will also provide ETH trustless staking and take a small fee. Once it goes live, a new LPL Allowance token will be minted for ETH (ethLPLA) that will determine the amount of ETH users will be able to stake.

  • Strategies: similar to other DeFi projects, each pool will be able to deploy capital to one or more strategies. In the case of the LINK staking pools, there will be a strategy that stakes LINK into a node, then potentially other strategies that will deploy any unused liquidity into other platforms to optimise the yield of the pool, making sure no tokens are idle.

In order to estimate the revenue of staking LPL, you would have to follow this formula:
LinkPool’s revenue / total amount of LPL being staked x Amount of LPL you have staked

Infographic detailing the possibilities available to users that want to operate their own node. Created by Twitter user CryptoSpong3. You can find a higher resolution version of this infographic here.

How to acquire LinkPool tokens
Since the ERC20 token migration, the team has explicitly said that they will not pursue the listing of its token on any CEX or provide liquidity to any DEX or AMM. These types of efforts will be up to the community. So far the community has provided liquidity for several pools, the main ones are:

Given that the LinkPool token is an ERC20 token, you can store it in any ERC20 compatible wallet. Additionally, MetaMask supports hardware wallets so you will be able to store your LinkPool tokens in devices such as Ledger or Trezor. This short video might help you to understand how to proceed.

About LinkPool
LinkPool is a leading Chainlink service provider with the goal of providing tools and services that benefit the Chainlink ecosystem. Their aims include lowering the barrier to entry to staking on Chainlink nodes, easing the amount of technical experience required to run a Chainlink node, and providing smart contract creators with the tools to easily search and identify Chainlink nodes that can suit their data requirements. You can reach out LinkPool team via:


As always Sylvarant great post. I think this provides an awesome historical record of where we came from.

There will of course be some significant changes to the LinkPool token, and we’ll share more details as soon as we’re able. We’re really looking forward to sharing more!


Thanks for your kind words Eric. On the long term, as LinkPool’s products & services bloom, it will be specially important to remember how did all start. I’m also looking forward to know more details about the new token & contract dynamics!


Wonderful recap, excited to see what this evolves into, what a beautiful start.


Great read! Excited to be a part of this :slight_smile: The part about LP not being ERC-20 sounds as if it will stay this way, wasn’t there an intention to convert to ERC 20 at some point because of the advantages?

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Thanks for joining us Paul! We’ll be migrating the LinkPool Token to an ERC20 before too long here, and more details on the migration and the utility of the new token itself are forthcoming.

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Beautiful @Sylvarant! We often forget it’s been three years and there’s a new wave of interested parties that would like to understand LinkPool better - this post is something I can easily refer people to. The network effects are only getting stronger when the community is involved - I can’t state how grateful I am, and I can probably say that on behalf of all LinkPool

Rock on :fist:


Hey, this was an excellent review on the history of the LinkPool tokens.

I’ve read on the Telegram that the future of the LinkPool token may be updated to a an ERC20 token.

Wondering if this rumor was valid or not, and was just wondering the future roadmap of the token for future retail investors who wish to invest in the token but cannot afford to fork out thousands of dollars to buy the minimum 0,04 LP (learnt this too late, such is life)

Kindly regards,



Hey Requiem
Take a look at Sylvarant piece entitled
it gives a good overview as to what is currently known about the proposed ERC20 migration


Excellent post Sylvarant! I look forward to more great things from the Linkpool team.

By virtue of running a mainnet net node and listing it on Market.link, can it be part of this process and be considered a node used in the Linkpool ecosystem?

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Welcome to our Discourse forum @georgemac510, it’s nice to have you here!

I really appreciate your kind words George, it’s always nice to know that we count with the support of the community :+1:

You are partly correct, Chainlink is a permissionless protocol and therefore anyone can operate a Chainlink node. However, I don’t know how familiar you are with the requirements to operate a profitable node. Since you have to keep in mind that operating a Chainlink node is quite a bit more complicated than running a program and leaving it running in the background. Chainlink nodes have to handle job requests, external adapters, fetching the data properly, find dApp developers willing to use your node, promote your services to potential clients & users. Running a Chainlink node is like running a business. I encourage you to give it a try, as it is a very enriching experience and getting in touch with the different parties involved in the DeFi & Chainlink space will teach you more than any tutorial.

It is worth noting that you are responsible for finding users willing to send data requests to your Chainlink node, so while listing your node in the Chainlink Market is an essential step for increasing your visibility within the Chainlink ecosystem, in no way guarantees usage to your node.

Once said that, please take your time to visit these resources that might help you in this new path:

Also make sure to join the Official Chainlink Discord if you have any technical questions!


Thank you for the thoughtful response. I will definitely check out these resources. I’m figuring that the uniqueness and usefulness of the data accessed through the external adapter that I or anyone would choose might be a marketing edge and draw more users to the node. I’m sure there are existing data feeds that are pretty common, so the trick would be to find something not offered already.

Sylvarant, would you say that running a successful node can be done on a part-time basis or is it best served as a full-time gig?

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You are welcome, it’s my pleasure to be able to help.

It certainly requires a lot of proactive management and either building yourself or using monitoring tools to check that everything is working fine, and if something isn’t, fix it as fast as possible.

On the other hand, I recently enjoyed reading a series of interviews to two Chainlink node operators. They shared their point of view regarding node Ops, tips and insights. I think you will like it as well:

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Patrick Collins is a great source of info and has been invaluable during the current Chainlink hackathon. I will definitely be referring to the article you posted. Thanks again!


I tried running a node once.

For the un-indoctrinated, it is a task. This a nice passive solution for those who are not code saavy.

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