By
Tolu Ajiboye
April 4th, 2024
Wormhole announced that the community will receive a W token airdrop that will be fully unlocked in four months.
The Wormhole network, a top-tier interoperability platform that is powering multichain applications and bridges at scale, has announced plans to further decentralize its ecosystem through the native token dubbed W. According to the announcement, the Wormhole network intends to distribute its ERC20 and SPL-based W token to the community and the respective shareholders, including the core contributors and investors in the coming months.
The distribution of the W token follows a successful funding round in November last year that yielded $225 million at a valuation of about $2.5 billion. As a result, the Wormhole platform is well positioned for further growth in the confirmed crypto bull market through its token W. Moreover, the Wormhole ecosystem consists of more than 200 web3 applications from different blockchains.
Wormhole’s W Tokenomics
According to the announcement, Wormhole’s W token will have a maximum supply of 10 billion with an initial circulating supply of 1.8 billion units. Worth noting that 82 percent of the W tokens will be locked for four years to ensure a healthy ecosystem and adoption. As for the W tokenomics, the company has allocated 5.1 percent of the total token supply to the Guardian Nodes. Furthermore, the Wormhole’s Guardians have a strong reputation for ensuring cross-chain security, thus ensuring overall network stability.
As for the Wormhole community, the company has set 17 percent of the total W token supply, whereby 11 percent of that will be unlocked at the token generation event (TGE), which includes the planned airdrop. The remaining 6 percent of the community allocation will be unlocked in four months after the TGE. As for the Wormhole core contributors, they have been allocated 12 percent of the total W token supply and will be unlocked in accordance with the planned release schedule.
About 3.1 billion W tokens, representing around 31 percent, have been allocated for ecosystem and incubation purposes. Notably, 5 percent will be unlocked at TGE, and the remaining 26 percent in accordance with the token release schedule.
Notably, 11.6 percent of the W tokens will be allocated for the strategic network participants and will be unlocked in accordance with the four-year release schedule. The remaining 23.3 percent of the total W token supply was allocated to the foundation treasury, which will be unlocked at TGE.
With the W token distribution process underway, Wormhole intends to further strengthen the DAO community to democratize the governance roles. Over time, the Wormhole community through the DAO will be responsible for removing and adding blockchain connections to the ecosystem. Additionally, the community will be responsible for the W token utility and design in addition to adjusting rate limits.