The decentralized messaging protocol Wormhole recently released the economic model for its token, W. Up to 11% of the tokens (1,700,000,000 W) will be distributed to the community, which has been welcomed by the community with great enthusiasm.
Introduction:
Wormhole is a decentralized messaging protocol that allows developers and users of cross-chain applications to leverage the advantages of multiple ecosystems. The project was launched in October 2020 by blockchain infrastructure company Certus One, initially building a token bridge directly between the Ethereum and Solana ecosystems. In August 2021, the protocol’s second version was released by internal developers at Jump Crypto, utilizing Proof of Authority (PoA) guardians as oracles and an permissionless relay network for cross-chain message transmission. It supports seven different blockchains, including Solana, Terra, Avalanche, Ethereum, Oasis, Binance, and Polygon. Around the same time, Certus One was acquired by Jump Crypto.
In February 2022, Wormhole suffered a hack, resulting in a loss of up to 120,000 ETH (approximately $326 million at the time), making it one of the largest recorded hacks of its kind. Subsequently, on February 4, 2022, Jump Crypto announced that it had contributed 120,000 ETH to compensate for the stolen funds, supporting the continued development of Wormhole. The good news is that in less than a month, Jump Crypto successfully retrieved the stolen funds from the attacker’s vault, with the collaboration of Oasis, and transferred the collateral and debt to its own vault.
Funding:
On November 29, 2023, Wormhole completed a funding round with a valuation of $2.5 billion, raising $225 million. This round of funding had no lead investor, with participation from Brevan Howard, Coinbase Ventures, Multicoin Capital, ParaFi, Dilectic, Borderless Capital, Arrington Capital, and Jump Trading. It is the largest funding round for a cryptocurrency project in 2023.
Token Economics:
According to the official release by Wormhole, its native token W is an ERC-20 token with a total supply of 10 billion tokens. The initial circulating supply is 1,800,000,000 W, and the specific distribution is as follows:
– Guardian Nodes: 510,000,000 W, accounting for 5.1% of the total supply. Guardian Nodes serve as the primary verification mechanism for any message on Wormhole. The tokens allocated to Guardians will not unlock during the Token Generation Event (TGE), but will be subject to the token release schedule.
– Community & Initial Release: 1,700,000,000 W, accounting for 17% of the total supply. Of this, 11% (1,100,000,000 W) will unlock during the TGE and be distributed in the initial stages, including related airdrops and activities, while the remaining 6% (600,000,000 W) will unlock within four months after the TGE. The snapshot for this airdrop was taken prior to the release of this blog.
– Ecosystem & Incubation: 3,100,000,000 W, accounting for 31% of the total supply. This allocation is for strategic contributors to the Wormhole ecosystem, including community organizations and developer community growth programs. Of this, 5% (500,000,000 W) will unlock during the TGE, while the remaining 26.1% (2,610,000,000 W) will be unlocked subsequently.
– Core Contributors: 1,200,000,000 W, accounting for 12% of the total supply. This portion of tokens will not unlock during the TGE and will be released according to the token release schedule.
– Strategic Network Participants: 1,160,000,000 W, accounting for 11.6% of the total supply. Similar to core contributors, the tokens allocated to strategic participants will not unlock during the TGE and will be released according to the token release schedule.
– Foundation Treasury: 2,330,000,000 W, accounting for 23.3% of the total supply. This portion of tokens is dedicated to the Wormhole Foundation’s reserve. 2% (200,000,000 W) of the Foundation Treasury will unlock during the TGE, while the remaining 21.3% (2,130,000,000 W) will be linearly unlocked according to the token release schedule.
Community Sentiment:
When the news of the Wormhole token model was released last night, various communities believed that this token airdrop could be a major event in 2024. Users participating in the interaction felt excited about the opportunity.
Related Reports:
– Wormhole recovers stolen “120,000 ETH” from hackers with the help of Jump Crypto and Oasis.
– Wormhole passes proposal, may become Uniswap V3’s official cross-chain bridge to BNB.
– Wormhole pays the highest “nearly 300 million TWD bug bounty” in payment history to a white hat hacker.
Image sources:
– Official File: [img]
– W Token Release Schedule: [img]
Official links:
– Twitter: https://twitter.com/wormholecrypto
– Website: https://wormhole.com/wormhole-w-tokenomics/