The newly launched native W token (Wormhole) is a cornerstone in Wormhole's plans for decentralization and creating a truly community-governed cross-chain infrastructure. The W token is not just a means for speculation; it is designed as a governance token that provides holders with direct rights to shape the future of the Wormhole protocol.
From Centralization to Decentralized Governance
Initially, Wormhole was governed and developed by the team, but the strategic goal of the project is to gradually transfer control to the community through a decentralized autonomous organization (DAO). The W token is a tool to achieve this goal.
W token holders will have the ability to influence key decisions regarding the operation and development of the Wormhole protocol. This includes:
Governance of Blockchain Connections: W holders can vote on adding or removing blockchains that Wormhole will connect to. This allows the community to determine which ecosystems will be integrated into the network.
Smart Contract Updates: Any significant updates or changes to Wormhole's smart contracts on various blockchains will require approval from W holders. This ensures transparency and security of the protocol.
Fee Adjustments: In the future, if Wormhole introduces fees for using its services, W holders will be able to vote on their size and structure.
Expansion of the Guardians Network: The ability to vote on the inclusion of new organizations or validators into the Guardians network, enhancing the decentralization and resilience of the protocol.
Setting Security Limits: W holders can influence security parameters such as limits on the volume of assets transferred, which is critical for protecting the protocol.
Further Utility of the W Token: The community will also be able to vote on the introduction of new utility for the W token, expanding its functions beyond governance.
Multi-chain Nativism and Governance Flexibility
One of the unique features of the W token is its multi-chain nativism. W will initially be issued as a native SPL token on the Solana blockchain, and then, through the Native Token Transfers (NTT) mechanism, Wormhole will also be available as a native ERC-20 token on Ethereum and other EVM-compatible blockchains (Arbitrum, Optimism, Base).
This allows W holders to participate in governance while being in their preferred network, without overpaying for fees or facing the complexities of cross-chain transfers. The Wormhole governance model (MultiGov) is specifically designed to support voting across all connected chains, making the decentralization process more inclusive and accessible.
Tokenomics and Distribution of W
The total maximum supply of W tokens is set at 10 billion (10,000,000,000) tokens. Initially, 1.8 billion W will be issued into circulation. The majority of tokens (82%) will be locked and gradually unlocked over four years according to a vesting schedule.
The distribution of W tokens is provided across several categories:
Community & Launch: A significant portion for airdrops, future incentives, and ecosystem grants.
Core Participants: For the team, developers, and key members of the project.
Ecosystem & Incubation: To support projects built on Wormhole.
Strategic Network Participants: For partners and major investors.
Guardian Nodes: To reward validators of the Wormhole network.
Foundation Treasury: To fund operational activities and further development.
Staking and Governance Roadmap
Wormhole has already presented a roadmap for implementing W staking and a full DAO:
June 2024: Launch of W staking on EVM-compatible blockchains (Ethereum, Arbitrum, Optimism, Base).
December 2024: Launch of the W staking program (Wormhole Staking Rewards Program, SRP) and W staking on Solana.
Q1 2025: Launch of Wormhole DAO with activation of multi-chain governance, allowing delegation, proposal creation, and voting across all supported chains.
Q1 2025+: Implementation of additional use cases for W to secure the network and access products.
The W token is not just a digital asset but a powerful tool for decentralization, providing the community with the opportunity to actively participate in shaping the future of Wormhole as a critical infrastructure protocol in the Web3 world.
