Wormhole Protocol recently released the economics paper of the $W token, which has an initial supply of 1.8 billion and a maximum supply of 10 billion. 17% of it will be used by the community and 11% will be airdropped to potential holders. This article will explain the token economics of the $W token in detail and reveal more details behind it.
1. $W Token Economics Overview
Initial Supply
The initial supply of $W tokens is 1.8 billion, which means that when the protocol is launched, there will be 1.8 billion $W tokens available in the market.
Maximum Supply
The Wormhole Protocol sets the maximum supply of $W tokens to 10 billion, which means that in the future, a total of up to 10 billion $W tokens will be released into the market.
2. Token Allocation
Community Fund
17% of the $W tokens will be allocated to the community fund to support the development of the Wormhole protocol and the construction of the ecosystem. This will provide financial support for community members and promote the continued development of the project.
airdrop
11% of the $W tokens will be distributed to potential holders via airdrops. This distribution method will help attract more users to participate in the Wormhole Protocol and increase the liquidity of the token.
3. Token Economics Design
Incentives
The economic design of the $W token is intended to drive user participation and contribution through an incentive mechanism. Holders can be incentivized by participating in the governance of the protocol, providing liquidity, etc.
Reward Distribution
The protocol will provide token rewards to contributors through a reward distribution mechanism. This mechanism will help motivate more users to actively participate in the ecological construction of the Wormhole Protocol.
4. Details behind the snapshot and airdrop
Snapshot mechanism
The Wormhole Protocol will determine airdrop eligibility through a snapshot mechanism, which means that a holder’s holdings at a specific point in time will determine whether they are eligible for an airdrop.
Airdrop Details
The specific details about the airdrop will be detailed in the paper, including the airdrop time, eligibility requirements, etc. Users can learn more about the airdrop by referring to the paper.
Conclusion
The economics paper of the $W token provides more transparency and opportunities for community members to understand the Wormhole Protocol. By explaining the token economics of the $W token in detail, as well as the details behind the snapshots and airdrops, the Wormhole Protocol shows respect and importance for community members. I hope this paper can inject new vitality into the development and ecological construction of the Wormhole Protocol and attract more users to participate.
