@WalletConnect is an important infrastructure in the Web3 field. As an industry standard, it enables seamless connections between wallets and applications across different blockchain ecosystems, featuring cross-chain compatibility, end-to-end encryption, and other advantages, facilitating numerous connections and serving many end users. However, it also faces some challenges, such as protocol revenue delay risks and governance centralization issues. Overall, WalletConnect has a bright future, and with the launch of the native token $WCT, its decentralized governance will continue to improve, which is expected to further promote the development of the Web3 industry.
The business model of WalletConnect mainly revolves around its native token WCT, specifically as follows:
• Governance mechanism: $WCT holders can vote to decide on key matters such as protocol upgrades and fee models, gradually transitioning to a DAO governance model, promoting network development through community governance.
• Staking rewards: Users who stake $WCT can receive a distribution of rewards from the network reward pool, with annualized returns dynamically adjusted based on staking duration and weight, incentivizing users to participate in network construction.
• Practical scenarios: $WCT can be used to pay for cross-chain communication fees and unlock advanced features, such as multi-chain asset management, providing users with more value and convenience.
• Deflationary model: 30% of protocol revenue is used to buy back and burn WCT, with a total supply of 1 billion tokens, an initial circulation of 18.62%, and the core development team and early supporters' tokens are linearly unlocked over 4 years to form a value support flywheel, ensuring the long-term value of the token.
