WalletConnect is the infrastructure protocol for the #Web3 connection layer, designed to serve as a secure connection bridge between user wallets and DApps. Its technology allows users to achieve seamless integration between wallets and DApps through methods such as QR code scanning without exposing private keys. It currently supports over 600 wallets, connects to more than 61,000 DApps, and serves over 45 million users globally, being the absolute leader in the field with a monopolistic position.
🔗 How #WalletConnect works:
#WalletConnect operates through a relay server infrastructure that supports real-time communication between wallets and DApps.
1️⃣ Scan to connect: When users use DApps, they only need to scan the QR code on the page with their wallet, and through tools integrated within the application, such as Reown AppKit, they can initiate communication with the network.
2️⃣ Rapid connection establishment: The QR code contains necessary information, and the wallet can complete the connection within seconds after recognition.
3️⃣ Secure communication: WalletConnect encrypts the information transmitted between wallets and DApps, protecting user privacy and asset security.
4️⃣ Cross-chain interoperability: Not limited to a specific chain, supporting multiple blockchains such as ETH, Solana, etc., so users do not need to install multiple wallets for different chains.
Its role is like 'Web3 Bluetooth', helping users easily and securely operate seamlessly across different blockchains.
🎯 Core advantages and data 📊
1️⃣ Significant network effects
• Monthly active wallet users exceed 5 million, with an annual growth rate of 27%.
• Cumulative connection number reached 275 million, expected to grow 4.4 times in 2024 compared to 2023.
• Supports 600+ wallets and 61,000+ applications, becoming the connection standard for DeFi and NFT ecosystems.
2️⃣ Technical moat
• Using end-to-end encrypted communication and QR code scanning mechanisms to achieve on-chain interaction without leaking private keys.
• v2 protocol upgrade significantly improves communication efficiency and introduces a node network (such as Consensys, Ledger, etc.) to enhance decentralization and security.
3️⃣ Solve industry pain points
• Unified connection SDK reduces development barriers, 'one integration, all-chain compatibility.'
• Effectively solve the fragmented user experience and complicated wallet support issues in Web3.
📝 $WCT Token economic model and value capture mechanism
1️⃣ Allocation structure
• Initial total supply: 1 billion tokens
• Airdrop: 18.5%
• Team lock-up: 18.5% (4-year linear release)
• Ecological incentives (reward pool): 17.5%
• Foundation: 27%
• Early supporters: 11.5%
• Core development: 7%
Currently, over 106.5 million $WCT have been staked, with over 305,000 holding addresses, reflecting strong network effects and community participation.
2️⃣ Token value capture
• Fee payment: DApps need to pay network connection service fees in $WCT based on the number of active users per month.
• Staking rewards: Users can stake $WCT to earn returns, while node operators receive incentives based on service quality.
• Community governance: Token holders can participate in voting on proposals for protocol upgrades, fee models, etc.
• Decentralized incentives: Staking lock-up mechanism ensures network security and promotes positive feedback loops.
🔔 Future development direction
1️⃣ Function expansion
• Web3Inbox messaging system: Supports decentralized notifications between on-chain users and DApps.
• Cross-chain communication support: Such as Cosmos IBC, Polkadot XCM, etc., making WalletConnect a universal connection protocol.
• On-chain compliance and identity management: Combining zero-knowledge proofs (ZKP) for on-chain compliance interaction verification.
2️⃣ Network governance and community-driven
• Decentralized node network gradually opens governance rights to construct permissionless connection infrastructure.
• Attract more developers to integrate WalletConnect SDK, expanding $WCT application scenarios and payment needs.
• Provide operators, stakers, and developers with multiple incentive mechanisms to establish strong community binding.
🧐 Investment perspective observation
#WalletConnect is not just a tool protocol; it is the 'traffic entrance' for #Web3 user connections. By empowering its connection network with $WCT, the protocol not only gains continuous economic support but also opens new avenues for community governance and long-term development.
Compared to some 'airdrop projects' that rely solely on marketing, WalletConnect's real usage data, extensive integration, and gradually decentralized technological iteration path constitute a strong moat. Especially in the context of 'interconnected chains' becoming a trend, WalletConnect's foundational infrastructure position in cross-chain communication and user interaction experience will further solidify its value. Currently, $WCT has been launched on Binance Launchpool, with a low participation threshold, having long-term potential, and is a rare token project in the #Web3 ecosystem that possesses a practical business model and implementation capability.
Summary: #WalletConnect and its token $WCT are at a critical juncture of upgrading from a 'tool protocol' to a 'protocol economy.' In the future, as Web3 applications continue to explode, its position as a connection layer will remain solid, with $WCT serving as the underlying infrastructure for numerous wallets, having extremely high strategic value and investment prospects. The recent Binance Launchpool new project is an opportunity not to be missed, enjoying the first wave of ecological dividends. 🧐
