@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, boasting advantages such as cross-chain compatibility and end-to-end encryption, 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 broad outlook, and with the launch of the native token $WCT, its decentralized governance will continue to improve, expected to promote further development in the Web3 industry.
The business model of WalletConnect mainly revolves around its native token WCT, specifically as follows:
• Governance mechanism: $WCT holders can vote on key matters such as protocol upgrades and fee models, gradually transitioning to a DAO governance model, pushing network development through community governance.
• Staking rewards: Users staking $WCT can receive a share of the network reward pool, with the annual yield 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 for repurchase and destruction of WCT, with a total supply of 1 billion tokens, an initial circulation of 18.62%, and core development team and early supporter tokens unlocking linearly over 4 years, forming a value support flywheel to ensure the long-term value of the token.