Fee Token:
$LINK serves as the primary fee token within Chainlink's ecosystem. Users utilize $LINK tokens to access and acquire valuable data from the network.

Staking for Node Operations:
To become a Chainlink node operator and participate in the network's decentralized oracle infrastructure, individuals are required to stake a certain amount of $LINK. This stake acts as collateral and ensures the integrity and reliability of its services.

Community Staking and Auto-Delegation:
Apart from node operators, community members also have the opportunity to stake their $LINK tokens. These staked tokens are automatically delegated to eligible node operators, further strengthening the network's decentralization and encouraging active participation from the community.

Collateral for DeFi Loans:
$LINK can be used as collateral to secure loans within the decentralized finance (DeFi) ecosystem. By pledging their $LINK tokens as collateral, individuals can access borrowing options and unlock liquidity while retaining ownership of their assets. This use case expands the utility of $LINK and enhances its role as a valuable asset within the DeFi space.

Demand for Decentralized Oracles: 
With the increasing demand for trustworthy and authenticated data within blockchain applications, there is a growing need for Chainlink's robust oracle solutions. This surge in demand for Chainlink's oracle services drives the corresponding need for $LINK tokens, which are utilized as a means of payment to access and utilize these reliable data services.

Integration into DeFi Ecosystem: 
Chainlink has become a fundamental component of the decentralized finance (DeFi) ecosystem. Many DeFi protocols rely on Chainlink's oracles to access external data for functions such as price feeds, lending/borrowing rates, and more. As the popularity and adoption of DeFi projects rise, the demand for $LINK tokens increases to access and utilize Chainlink's oracle services.

Node Operation and Staking: 
To become a Chainlink node operator and participate in the network, individuals need to stake a certain amount of $LINK tokens. This requirement creates demand for $LINK tokens as aspiring node operators acquire them to fulfil the staking criteria and take part in the network's decentralized oracle infrastructure.

Chainlink's value creation lies in its ability to bridge the gap between blockchain networks and the real world, enabling smart contracts to access reliable, verifiable, and accurate data. By providing a decentralized oracle network of independent node operators, Chainlink ensures data integrity, security, and decentralization within decentralized applications. Its value proposition centers around empowering developers to build advanced and sophisticated applications that can securely interact with external data, driving innovation and adoption across various industries.

Value Accrual to Protocol:
Fees and rewards are entirely earned by the Service Providers, primarily the Oracle Nodes.

Value Accrual to Token:
$LINK is used to pay for services on the Chainlink network and thus the Equation of Exchange suggests that the token price rises with increasing transactional volume, considering the total $LINK supply remains the same, as well as the average holding period of $LINK.

Revenue comes from:
- dApps:
     - Chainlink BUILD Fees
     - Revenue Sharing
- Blockchains:
      - Chainlink SCALE Fees

Revenue is denominated in:
- Primarily in $LINK

Revenue goes to:
- Node Operators