Three-tier criteria for wallet performance rewards
The wallet reward system in the WalletConnect network is designed to be highly practical. It is divided into three tiers to encourage wallet providers to enhance user experience, using WCT tokens as an incentive to ensure active participation in ecosystem development. Simply put, these three tiers resemble a progressive ladder, with increasingly stringent criteria from beginner to advanced levels, along with generous escalating rewards.
The lowest tier includes ineligible wallets. These are typically wallets that are just starting out or operating at intermediate levels, failing to meet the minimum threshold. For example, if these wallets do not load a sufficient number of WCT tokens or achieve less than 100,000 monthly connections and signatures, they will not receive rewards. Essentially, low-activity wallets are excluded at this level, forcing everyone to upgrade.
The middle tier consists of eligible wallets, which must first stake a minimum amount of WCT, then achieve at least 100,000 successful monthly connections and signatures. These wallets share a reward pool of 1.5 million WCT in the first year, distributed based on the number of connections, signatures, and user experience criteria. User experience criteria include compliance with WalletConnect accreditation requirements, such as response speed and security. Rewards at this level are distributed linearly, with better performance receiving larger rewards.
The highest tier consists of approved wallets, which is an elite category that must pass rigorous auditing, including support for CAIP standards and comprehensive encryption. The reward pool is larger, with 4 million WCT allocated in the first year. The distribution is non-linear, favoring high-performance wallets and encouraging competition. The calculation process is initially conducted off-chain, but the results are publicly available on-chain to ensure transparency.
This three-tier system uses WCT tokens to enhance wallet performance and improve user connectivity across Web3. In the future, governance will be able to adjust the pool size to better align rewards with ecosystem needs. In short, it is not just about distributing funds; it is also about using incentives to build a high-quality wallet network.
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