WalletConnect is a chain-independent protocol that enables secure wallet connections to DApps across ecosystems. The native token WCT supports governance, staking, and incentivizing the network.
What is WalletConnect?
In the fragmented world of multi-chain Web3, seamless communication between wallets and decentralized applications (DApp) has long been a challenge. WalletConnect (WCT) serves as a crucial infrastructure layer, driving a more unified and accessible blockchain experience across ecosystems.
Launched in 2018, WalletConnect has become the industry standard for securely connecting wallets to DApps. It operates as a chain-independent UX protocol, allowing users to interact with any decentralized platform using any wallet — whether on Ethereum, Layer 2 networks, Solana, Cosmos, Polkadot, or even Bitcoin.
To date, WalletConnect has facilitated over 150 million connections, supporting more than 24 million users, over 600 wallets, and more than 40,000 applications across the cryptocurrency space.
The strength of WalletConnect lies in its cross-chain interoperability and robust security architecture. This platform utilizes end-to-end encryption and a decentralized database structure based on Merkle trees, ensuring data safety across all devices. Combined with a global service node network, WalletConnect allows for smooth wallet connections to applications through QR code scanning or deep links — significantly enhancing both user experience (UX) and developer experience (DX).
In summary, WalletConnect (WCT) is not just a connector but also the backbone of secure, multi-platform interaction in Web3, bringing the industry closer to a truly open and user-friendly internet.
How Does WalletConnect Work?
WalletConnect (WCT) is not just a bridge between users and decentralized applications (DApp) — it is also a communication protocol that prioritizes privacy, focuses on security, and is scalable, designed to support seamless Web3 connectivity. At its core, WalletConnect is built on four main technical pillars:
✅ Cross-Chain Compatibility
WalletConnect is designed to be chain-agnostic. Instead, it provides a unified interface that supports seamless connections between wallets and applications on Ethereum, Solana, Cosmos, Bitcoin, etc. This makes it easy for users to switch between different chains.
✅ End-to-End Encryption
All communication through the Relay Service is fully encrypted. Sensitive data such as wallet addresses and transaction hashes are protected in transit, and even the relay nodes cannot access the content. This ensures user privacy and strengthens protocol-level security.
✅ Decentralized Data Layer
To avoid single points of failure and support global scalability, WalletConnect employs Rendezvous Hashing to implement a decentralized, permissionless database layer. This method ensures high availability, stability, and consistent performance across the entire distributed network.
✅ Service Nodes and Gateway Nodes
The WalletConnect architecture consists of two main types of nodes. Service nodes manage the storage layer, while gateway nodes serve as the access points between wallets and applications. Together, they form a decentralized network that enhances both reliability and performance.
What is the WCT Token and How Does It Work?
The WCT token is the native utility and governance token of the WalletConnect network, launched on the Optimism Layer 2 mainnet. This token combines the security of Ethereum with the high-speed performance of Optimism, playing a central role in the decentralization, incentivization, and long-term sustainability of the ecosystem.
The following are the main use cases of WCT:
✅ Governance Rights
WCT holders can participate in on-chain governance, voting on important proposals such as fee structures, technical upgrades, and ecosystem funding. This ensures that the protocol's direction is community-led.
✅ Staking
Users can stake their WCT tokens to earn rewards. The token lock-up period ranges from 1 week to 2 years — the longer the commitment, the higher the rewards. Staking also helps enhance the security and stability of the network.
✅ Incentive Mechanism
17.5% of the total token supply is allocated for ecosystem rewards. This reward is for node operators (based on uptime and performance), high-quality wallets, and development teams — incentivizing service improvements across the system.
✅ Protocol Fees
As the WalletConnect network matures, applications and SDKs using the relay service may incur service fees — potentially based on metrics like monthly active users (MAU). These fees will be paid in WCT, ensuring a sustainable and self-sufficient economic model.
📌 WCT Tokenomics
WCT has a fixed maximum supply of 1 billion tokens, with no initial inflation. Below are the details of its distribution:
Core Development (7%): Allocated for protocol and module upgrades.
Incentive Fund (17.5%): Used for staking and performance-based rewards.
Airdrop (18.5%): Seasonal airdrops for users, wallets, and node participants. The first round distributes 50 million tokens and can be claimed before October 18, 2024.
Initial Team & Supporters (18.5% + 11.5%): Locked for 4 years with a 1-year cliff, then vested linearly.
WalletConnect Fund (27%): Reserved for partnerships, funding, and long-term ecosystem development.
While the current supply is fixed, the community can vote to implement a future inflation mechanism through governance — although no such plans are expected in the next 3-4 years.
Future Prospects of WalletConnect
The future of WalletConnect focuses on evolving into a truly decentralized infrastructure layer for Web3. Several major upgrades are planned to strengthen this direction:
🔧 Permissionless Node Infrastructure
Anyone can run a service node, enhancing decentralization and reducing reliance on centralized operators.
🛡️ Audit Node
A new audit node layer will be introduced to assess the performance of service nodes and ensure high-quality service delivery across the network.
💸 Token-based Fee Model
Applications and SDKs will begin paying fees in WCT based on usage (e.g., by monthly active users), creating sustainable demand and practical utility for the token.
🗳️ DAO Governance
Protocol control will gradually be transferred to the community through a decentralized autonomous organization (DAO), which will oversee node voting, protocol upgrades, and budgeting.
📌 Market Outlook
With the dominant position of WalletConnect in the Web3 infrastructure space and the central role of WCT in governance, staking, and incentivization, many analysts are very optimistic about its price trajectory:
Short term (Initial launch phase): With high liquidity and community attention, WCT could surge to around $1.59, driven by ecosystem momentum.
Long term (By the end of 2025): If cross-chain adoption accelerates and WalletConnect is further integrated into the Web3 UX flow, WCT could potentially reach $3.24, solidifying its position as a core utility token in the decentralized ecosystem.
📌 Conclusion
As Web3 scales and multi-chain interoperability becomes essential, WalletConnect is strategically positioned to lead this transformation. The WCT token is not just a governance mechanism or reward — it is also the economic backbone of a growing decentralized network. With real utility, a developing infrastructure, and a strong community foundation, WCT is one of the most promising assets in the next phase of Web3 adoption.