Wormhole Updates Tokenomics, Launches W Token Reserve

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Wormhole announces Tokenomics 2.0 model with strategic reserve to protect the long-term value of W Token .

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The crypto market continues to be bustling as Wormhole , one of the largest decentralized blockchain bridges today, has just officially announced an important update to the Tokenomics 2.0 model. The centerpiece of this change is the launch of Wormhole Reserve - a new strategic reserve fund, designed to protect the long-term value and strengthen the stability of the W Token .

According to the latest announcement, this reserve will collect and lock up both on-chain and off-chain revenue from various channels, including the Wormhole protocol itself, the cross-chain Portal, and applications in the ecosystem. In other words, the revenue will be “channelized” to create a sustainable layer of protection for the community and investors.

In addition, Wormhole also increases the opportunity to generate profits for users who actively participate in governance and use applications in the ecosystem. Staking is still maintained as a volatile reward, but users of the Wormhole Portal – a multi- chain bridge connecting dozens of networks such as Ethereum, Cosmos and Solana – will receive additional rewards, thereby increasing the Staking yield. The project's goal is to provide a base yield of 4% for the W Token without increasing supply.

“The yield comes from a combination of protocol revenue and the existing Token supply. There is no additional inflation, the total supply remains at 10 billion Token. As Wormhole grows, W holders will grow with it,” the development team emphasized.

Another major change in Tokenomics 2.0 is the replacement of the “annual cliffs” Token Lockup mechanism with a bi-weekly unlocking schedule. This helps reduce sell-off pressure in the market, while creating long-term Dump for the Token value.

Specifically, the new distribution schedule will affect guardian nodes, community Token holders, and strategic partners , while the Wormhole Foundation treasury will remain on its four-year schedule. Token for core contributors will continue to be locked according to contract commitments, ensuring transparency.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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