WCT Series (12): Fair Design of WCT Token Distribution Plan
As the governance and incentive tool of the WalletConnect network, the design of the WCT token distribution plan is indeed well thought out, aimed at ensuring fairness and long-term sustainability. The total supply is set at 1 billion, a figure not chosen arbitrarily but based on the actual needs of network development. The distribution ratio is clear: core development takes 7%, for the continuous iteration of the protocol; the reward pool is 17.5%, to incentivize node operators and participants; airdrops account for 18.5%, stimulating user activity through seasonal distributions; the team and early supporters account for 18.5% and 11.5%, respectively, recognizing their contributions; the foundation holds 27%, supporting ecological expansion and operations.
The core of this design is to balance the interests of all parties, avoiding excessive concentration by any one party. For example, the tokens of the team and early supporters have a 4-year unlocking period, with the first year being a cliff lock, which prevents short-term cashing out and encourages their long-term investment in network building. The airdrop portion is gradually released over multiple years to prevent a flood-like influx into the market at once, which could cause price fluctuations. This mechanism allows smaller users to also share in the benefits through participation in airdrops, rather than being monopolized by larger holders.
From a fairness perspective, this plan reflects a community-oriented approach. The portion held by the foundation will be used for grants and partnerships, promoting more applications to connect to WalletConnect, ensuring ecological diversity. Compared to some projects that distribute tokens arbitrarily, WCT's model places greater emphasis on transparency and incentive alignment. For example, the phased distribution of the reward pool, with only 5% released in the first year, and the remainder used to test assumptions later, allows the network to grow steadily rather than all at once.
Overall, the WCT distribution plan is not just about sharing money; it is a blueprint serving the vision of decentralization. Through governance voting, holders can adjust the details to ensure the plan evolves with the network. This makes me very optimistic about the future of WalletConnect, as it truly hands power over to the community.
