Wallet Connect (WCT) Coin and Tokenomics

Bittime - WalletConnect Token (WCT) is a digital asset that is an integral part of the WalletConnect Network ecosystem. This token is designed to encourage a community of users, applications, and wallets to build a better on-chain UX experience through mutual incentives.

Launched on the Optimism OP Mainnet, WCT combines the security of Ethereum with the speed of the OP Mainnet.

Within its ecosystem, WCT Coin has four main functions, namely network fees, incentive giving, staking mechanisms, and governance. These four functions play a role in maintaining the stability and decentralized development of the network.

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WCT Coin Tokenomics

WCT Tokenomics regulates token allocation within the WalletConnect network. With an initial release planned for the end of 2024, the ecosystem aims to increase community engagement through a sustainable incentive system.

Here is the breakdown of WCT token allocation:

• WalletConnect Foundation: 27% (270 million WCT) for partnerships, grants, and ecosystem development.
• Airdrops: 18.5% (185 million WCT) for distribution to users, applications, wallets, and nodes.
• Development Team: 18.5% (185 million WCT) as compensation for the team.
• Rewards: 17.5% (175 million WCT) for staking and performance-based rewards.
• Backers: 11.5% (115 million WCT) for those who support the initial development of the network.
• Core Development: 7% (70 million WCT) for further development of the protocol.

Main Functions of WCT Coin in the Ecosystem

1. Network Fees

When the ecosystem reaches a certain level of maturity, the community can determine the fee model through governance mechanisms. The proposed model currently uses a Monthly Active User (MAU) approach to determine the cost of network connection services.

2. Incentives and Rewards

A total of 17.5% of the total token supply is allocated to incentivize network contributors. Token distribution will be based on certain factors, such as user engagement, node performance, and improvements to on-chain UX standards.

3. Staking WCT Coin

WCT holders can stake to support network stability while earning rewards. The staking system allows tokens to be locked for a period of between 1 week and 2 years. During the locking period, tokens cannot be withdrawn, but participants will receive rewards based on their level of staking commitment.

4. Decentralized Governance

WCT Coin holders have the right to vote on various network proposals. WalletConnect Network's governance model will evolve gradually with a transition to a Decentralized Autonomous Organization (DAO) system. Ultimately, all ecosystem-related decisions will be managed directly by the token holder community.

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Does WCT Coin Have Token Inflation?

Currently, WCT Tokenomics does not adopt an inflation mechanism as a token distribution strategy. However, the community retains the flexibility to propose the implementation of inflation in the future if necessary to support the sustainability of the network.

Conclusion

WCT Coin plays an important role in the WalletConnect ecosystem by offering various benefits to its users. Through the mechanisms of fees, incentives, staking, and governance, WCT Tokenomics is designed to encourage community involvement and maintain network sustainability.

With the growing development of Web3, WCT can become a digital asset that influences the future of user experience in the blockchain world.

FAQ

What is WCT Coin?

WCT Coin is the native token of the WalletConnect Network which functions for governance, staking, payment of network fees, and incentives for ecosystem participants.

How does the WCT Tokenomics mechanism work?

WCT Tokenomics includes token allocations for community, team, ecosystem development, airdrops, and staking. The total supply is divided for various purposes to support network growth.

When will WCT Coin be tradable?

WCT Coin will enter its first release phase in 2024, with token transferability features to be gradually enabled according to the decentralization roadmap in 2025.

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Reference

coincarp.com, WalletConnect Token , accessed on February 25, 2025.

Author: AWW