At present, Chainlink has been criticized for its dependence on a limited number of trusted nodes despite its efforts to be as decentralized as possible. However, LINK staking intends to remove this concern.
LINK staking will introduce rewards and penalties to incentivize the proper operation of the Chainlink oracle network. It will also enhance the ability of node operators to receive tasks and earn fees within the Chainlink network.
In this system, participants will lock up their LINK tokens as collateral. This [collateral](https://coinmarketcap.com/alexandria/glossary/collateral) can be taxed or “slashed” if a node misreports data. The LINK tokens taxed from dishonest validators will be redistributed as earnings to honest validators.
The developers of Chainlink hope that the introduction of this crypto-economic security should make the cost of attacking the network's price oracle greater than the potential profits an attack would generate. This is a similar gamification strategy that blockchain networks, like Bitcoin and Ethereum, depend on.
Similarly, LINK holders that do not run their own node can participate in staking by delegating their tokens to a trusted node operator. Chainlink developers estimate that the staking program will offer a 5% return initially from a combination of emissions from the Treasury and fees paid by users of Chainlink's data feeds, and it will ultimately rely on only fees earned by the network.
The participation of community members in staking will further incentivize node operators to remain honest. Participants will be able to choose where to delegate their stake through reputation scores given to node operators that consistently provide valid data feeds.