Chainlink has introduced the Chainlink Reserve, a new on-chain fund designed to accumulate and hold LINK tokens using revenue from both enterprise and decentralized application usage. The reserve aims to enhance the long-term growth and sustainability of the Chainlink Network, the company announced on Thursday.

The initiative is powered by Payment Abstraction, a mechanism that allows users to pay for Chainlink services using assets such as ETH or USDC, rather than being limited to LINK. These payments are automatically converted into LINK via Chainlink’s infrastructure and decentralized exchanges, with the resulting tokens deposited into the reserve.

According to Chainlink, the reserve is funded by a mix of off-chain enterprise revenues and on-chain usage fees, offering a seamless way to drive organic demand for LINK without altering user experience.

“The launch of the Chainlink Reserve marks a pivotal evolution in Chainlink, establishing a strategic LINK reserve funded using off-chain revenue, as well as from on-chain service usage,” said co-founder Sergey Nazarov. “Demand for the Chainlink standard has already created hundreds of millions of dollars in revenue, substantially from large enterprises.”

As of this week, the Chainlink Reserve already holds over $1 million in LINK, with expectations for the balance to grow significantly as institutional adoption continues. Chainlink clarified that it does not anticipate any withdrawals from the reserve for “multiple years,” positioning it as a long-term support structure for the protocol’s development and security.

Prominent enterprise partners such as Mastercard—which integrated Chainlink to enable on-chain crypto purchases—and JPMorgan, whose Kinexys platform utilizes Chainlink’s infrastructure via Ondo Chain, are already contributing to the protocol’s expanding revenue streams.

To ensure transparency, Chainlink has published a live dashboard at reserve.chain.link, along with the reserve’s contract address viewable on Etherscan.