My Own Wallet
Not that long ago, I had my iris scanned in Dubai for the Worldcoin project. Since then, I have been steadily accumulating Worldcoins. So far, I have over $50 worth of WLD. It's not quite the Universal Basic Income dream that Worldcoin is aiming for, but hey, it's a start.
The cool part? The amount feels meaningful. It is definitely more than what most airdrops give out. The not-so-cool part? The app and the entire distribution process. It is currently quite finicky and arbitrary, blocking users based on where they are located or what they do. I have had my share of struggles trying to claim my 'grants' in Dubai. The app keeps saying it is currently busy, but a VPN shows it is just a geoblock.
This is disappointing, considering that the whole point of the iris scan was to ensure that all users were real and that there would be no shenanigans. If users are going to get blocked or restricted, then why not just skip the hassle and do it the old fashioned way? For example, by asking users to send their passports or selfies. Unfortunately, this proves that it takes much more than just eyeball scans to ensure fair distribution.
Lately, things have become even more restricted, and now, VPNs also seem to be getting the cold shoulder from the Worldcoin team:
To add insult to injury, the app audaciously labels all denied 'grants' as 'missed'. Users are being blamed when, in reality, claims are being blocked by the app itself.
It's a far cry from the original vision of one identity, one world passport, one Worldcoin account. The Reddit crowd's pretty frustrated about the grant claiming hassles, whether it's bugs or restrictions or something else.
Tokenomics and Caution
Let’s look at the numbers. Worldcoin’s initial supply capis 10 billion WLD. At launch, only 143 million WLDs were circulating, with 100 million loaned to market makers outside the U.S. Most of the 10 billion tokens will be unlocked over the next 15 years, starting on July 24, 2024. That is going to cause some serious inflation, which I’m assuming will be offset with higher grants.
For those caring only about airdrops, this might not be a big deal. However, investors should tread carefully.
As for the market makers, they received 100 million WLD on a 3-month loan, post-launch. They could then either return the tokens or buy them for $2 each. This setup pegs WLD’s price around $2, but with the loan period over, it’s all a bit uncertain now.
The Big Picture
Worldcoin represents an intriguing project. It has Sam Altman of OpenAI fame backing it, and it is dabbling in some major issues such as wealth distribution and universal basic income. The iris scanning part is not without controversies. Edward Snowden, for example, points out that even if the iris data is hashed and anonymous, the unique hash could be linked to individuals if, say, a government or a corporation develops its own scanners.
Despite privacy concerns, people worldwide, especially in less developed regions, are scanning their eyes like there is no tomorrow. So here is my take: If there is a scanning orb in your city (or somewhere nearby) and you are not too fussed about privacy, go for it. Set up your World ID account and enjoy the benefits. But as an investment? I would say DYOR and probably give this one a pass. Inflation and rigid tokenomics just don't make it appealing enough.
