The WCT (WalletConnect Token) is the native utility and governance token of the WalletConnect ecosystem. It is not a token directly from Binance, but it was listed on Binance through its Launchpool platform.
Here I explain what it is and what it is for:
What is WalletConnect?
WalletConnect is an open-source protocol that allows cryptocurrency wallets to connect securely with decentralized applications (dApps). Instead of relying on browser extensions or copying and pasting addresses, WalletConnect facilitates the connection of your wallet to a dApp by quickly scanning a QR code or a deep link.
Its main goal is to make interaction with Web3 easier and safer, supporting a wide range of blockchain networks such as Ethereum, Solana, Polkadot, Cosmos, and Bitcoin. It has achieved significant adoption, connecting millions of users to thousands of dApps.
What is the WCT Token and what is it for?
The WCT is an ERC-20 token deployed on the Optimism network, with a total supply of one billion tokens. Within the WalletConnect ecosystem, WCT has several key functions:
* Governance: WCT holders can participate in decisions regarding protocol updates, fee structure, and the future development of the network. This allows the community to have control over the project.
* Staking: Users can stake their WCT tokens to operate Service or Gateway nodes on the network. By locking a minimum amount of tokens, node operators gain the right to process encrypted messages and direct traffic, and in return, receive rewards.
* Rewards: Tokens are distributed as incentives to keep the network secure and efficient.
* Fees: In the future, WCT holders may propose and decide on the introduction of fees for network services (e.g., the use of relays), which would be paid in WCT.
WCT on Binance
Binance listed WCT as the 67th project in its Launchpool. This allowed users to lock their BNB, FDUSD, and USDC for a "farming" period to receive rewards in WCT. After this period, WCT was listed for trading on Binance with pairs such as USDT, BNB, FDUSD, and TRY.
In summary, the WCT is essential for the decentralization and functioning of the WalletConnect ecosystem, allowing users to securely connect their wallets with dApps and participate in the evolution of the protocol.
