Meaning and Introduction of WCT
WCT stands for WalletConnect Token, the native token of the WalletConnect network. It is a blockchain-based utility token running on the Optimism mainnet (Ethereum's Layer 2 solution), designed to support decentralized governance, staking, rewards, and future potential fee structures within the WalletConnect ecosystem. Below are the core functions and features of WCT:
1 Governance:
◦ WCT holders can participate in network decisions through decentralized governance mechanisms, such as protocol upgrades, fee structures, or reward distribution, granting the community control over the future development of the network.
2 Staking:
◦ Users can stake WCT tokens in the network to support its stability and security, receiving rewards. The staking duration ranges from one week to two years, and rewards are proportional to the staking duration and amount, using a fixed staking system with a 7-day unbinding period.
3 Rewards:
◦ WCT serves as an incentive mechanism to reward node operators and wallet providers in the network, distributing rewards based on performance metrics (such as uptime, latency, and successful connection counts). 17.5% of the initial token supply is specifically allocated to incentivize early participants.
4 Fees:
◦ Currently, the WalletConnect network charges no fees for applications and SDKs using relay services. However, in the future, the community may introduce a fee structure based on monthly active users (MAU) through governance mechanisms, with fees payable in WCT to ensure the network's long-term sustainability.
5 Tokenomics:
◦ Total Supply: The initial supply cap for WCT is 1 billion tokens.
◦ Distribution Method:
▪ WalletConnect Foundation: 27%
▪ Airdrop: 18.5% (First quarter airdrop of 50 million tokens, ending on January 3, 2025)
▪ Incentive Program: 17.5%
▪ Core development, team, and early supporters: The remaining portion, with some tokens having a 4-year unlocking period and a 1-year lockup period.
◦ Tokens will be non-transferable at the end of 2024 when launched, but fully transferable from April 15, 2025, allowing free transfers between wallets and addresses.
6 Market Data (as of June 26, 2025):
◦ Price: Approximately $0.31 (down about 3.3-6% in the last 24 hours).
◦ Market Cap: Approximately $57.1 million, ranked 462nd (CoinMarketCap data).
◦ Transaction Volume: Approximately $39 million in the past 24 hours.
◦ Circulating Supply: Approximately 186.2 million (19% of total supply).
◦ All-time high: Reached $1.35 on May 31, 2025, currently down about 77% from the all-time high.
Introduction to WalletConnect
WalletConnect is an open-source cross-chain protocol designed to connect cryptocurrency wallets with decentralized applications (DApps) in a secure and user-friendly manner, improving the user experience (UX) of Web3. Since its creation by founder Pedro Gomes in 2018, it has become an essential infrastructure in the Web3 ecosystem, enabling users to seamlessly connect wallets and DApps across different blockchains. Below are the core features and functions of WalletConnect:
1 Core Features:
◦ Connection Method: Users can connect wallets (such as MetaMask, Coinbase Wallet, etc.) to DApps by scanning QR codes or using deep links, eliminating the need for browser extensions or manual address entry, simplifying the interaction process.
◦ End-to-end Encryption: All communications are end-to-end encrypted through Relay Services, ensuring that sensitive information such as wallet addresses and transaction details are not accessed by third parties, protecting user privacy.
◦ Decentralized Architecture:
▪ Service Nodes: Store encrypted messages, using a decentralized database based on rendezvous hashing to ensure balanced data distribution and network fault tolerance.
▪ Gateway Nodes: Handle the routing of encrypted messages between wallets and DApps.
▪ These nodes collectively form a decentralized messaging layer, supporting offline message storage (mailbox system), ensuring that transaction requests can still be received even if the wallet is offline.
2 Cross-Chain Support:
◦ WalletConnect is a chain-agnostic protocol supporting over 300 blockchains, including Ethereum and its Layer 2 networks, Solana, Cosmos, Polkadot, Bitcoin, etc., widely used in DeFi, NFTs, and blockchain gaming.
◦ It does not directly handle cross-chain operations, but serves as a connecting layer to facilitate cross-chain interactions between wallets and DApps.
3 Ecosystem Scale:
◦ According to official data, WalletConnect has provided 300 million on-chain connections for over 47.5 million users, supporting more than 600 wallets and 67,000 DApps projects, covering almost all major projects in the Web3 ecosystem.
◦ Processes over 15 million connections monthly, playing a key role in the $2 trillion transaction volume of Web3.
4 Decentralization Process:
◦ The WalletConnect network is gradually transitioning from initially centralized components to a fully decentralized network:
▪ 2023: Launch of the decentralized roadmap and release of protocol v2.
▪ 2024: Introduction of node operators (such as Consensys, Reown, Ledger, etc.) and launch of the WCT token.
▪ 2025 and beyond: Plans to achieve a fully permissionless node network, allowing anyone to run nodes and participate in consensus.
◦ WalletConnect Foundation: Led by Pedro Gomes and Yessin Schiegg, responsible for the long-term development, security, and decentralization process of the network, having raised over $24 million (including Union Square Ventures, Coinbase Ventures, etc.).
5 WalletGuide：
◦ WalletConnect also operates the WalletGuide project, a directory reviewing and listing on-chain wallets that meet high security and UX standards, enhancing trust for users and developers.
6 Future Vision:
◦ WalletConnect aims to become the core UX infrastructure of Web3, supporting Smart Sessions, application NFTs, and one-click authentication, laying the foundation for multi-chain smart wallets and AI-driven Web3 experiences.
◦ Through WCT tokens and community governance, the WalletConnect network will continue to drive decentralization and user-driven innovation, aiming to serve the future 1 billion Web3 users.
The relationship between WCT and WalletConnect
In simple terms, WalletConnect is a chain-agnostic protocol ecosystem providing connection services between wallets and DApps, while WCT is its native token, used to support decentralized governance, staking, rewards, and future potential fee payments for the network. WalletConnect addresses the fragmentation and security issues of wallet and DApp interactions in Web3, while WCT serves as the economic pillar driving the network's decentralization and sustainable development.
