Staking rewards in the WalletConnect ecosystem are distributed in a way that aligns incentives with active network participation. When users stake their $WCT tokens, they lock them into the protocol, contributing to network security and governance engagement. Rewards are calculated based on the amount staked and the duration of staking, ensuring that long-term commitment is recognized and incentivized, while also encouraging users to participate in ecosystem decisions and proposals.
The distribution mechanism is fully transparent and on-chain, allowing stakers to verify their rewards without relying on intermediaries. Rewards can include additional $WCT tokens, governance privileges, or access to exclusive features within the WalletConnect Network. This system ensures that the benefits of staking are tangible and proportional, fostering a healthy cycle of participation, loyalty, and community growth.
Moreover, WalletConnect employs dynamic adjustments to reward rates to maintain economic balance. If network participation increases or decreases, staking rewards can be tuned to reflect current engagement levels, preventing inflationary pressures while keeping incentives attractive. This thoughtful design ensures that staking not only supports network operations but also reinforces long-term value for $WCT holders.
