What is the purpose of the WCT token? Analyzing the decentralized governance and business loop of WalletConnect
Many people see the $WCT token and their first reaction is "Can I speculate on this?" But in fact, it is the key to WalletConnect's transition from a "free tool" to a "decentralized ecosystem." First, let's look at its core uses:
The first is governance rights: token holders can vote on important updates to the protocol, such as "Should we support a new public chain (like Sui)?" or "Should we adjust security rules (like shortening session expiration times)?" Last year, WalletConnect wanted to launch a "cross-chain messaging" feature, which was only implemented after being approved by a vote from WCT holders. This is completely different from traditional companies where the "boss decides," aligning more with the decentralized logic of Web3.
The second is staking and mining: users can stake WCT to become "network validation nodes," helping to review the security qualifications of DApps and monitor unusual connection requests. Nodes receive rewards based on the amount staked and their contributions. Currently, there are over 1,000 nodes running, which serve as WalletConnect's "security sentinels," further reducing the overall ecosystem's risk.
More importantly, WCT enables WalletConnect to have a sustainable business loop: previously, it was a purely free protocol, relying on donations and financing to maintain operations; now, through node services (such as providing customized security monitoring for institutional clients), it can charge a small fee and use part of the revenue to buy back WCT to reward nodes. This "governance + incentives + service fees" model is more solid than projects that solely rely on financing and burning money, making WCT not just a token for speculation, but an asset with actual ecological value.
