WalletConnect (WCT) is a pioneer in the Web3 communication protocol field, aiming to eliminate connection barriers between blockchain applications and wallets through **decentralized infrastructure**. Its core mission is to establish a unified on-chain interaction standard, covering over 50 mainstream public chains such as Ethereum, Solana, and Cosmos, addressing the core pain point of users needing to repeatedly switch tools in a multi-chain ecosystem. According to official data, as of April 2025, the WalletConnect protocol processes over 120 million connection requests daily, serving 90% of mainstream wallets such as MetaMask and Trust Wallet, as well as leading DApps like Uniswap and OpenSea, becoming the “TCP/IP protocol layer” of the Web3 ecosystem.

Unlike traditional centralized bridging solutions, WalletConnect adopts an **end-to-end encrypted relay network**, where user private keys and transaction data are controlled entirely by local devices, and service nodes only act as information relays, completely eliminating the risk of man-in-the-middle attacks. This design preserves the spirit of decentralization while reducing developer integration costs through standardized SDKs, promoting the scalable application of cross-chain ecosystems.

Two, Technical Architecture: Modular Design and Cross-Chain Compatibility

WalletConnect's technical system is built around three core components:

1. Decentralized Relay Network: A distributed database based on the Rendezvous hashing algorithm, enabling encrypted storage and asynchronous delivery of messages, ensuring the network has no single points of failure and is horizontally scalable;

2. Developer Toolchain: Providing multi-language SDKs and APIs to support one-click integration of wallet connections, transaction signing, state synchronization, etc., reducing the average development cycle from 3 weeks to 2 hours;

3. Chain-Agnostic Protocol Standards: Through abstracted interface design, compatible with EVM, Cosmos SDK, Move VM, and other heterogeneous chain architectures, eliminating ecological fragmentation.

Technical breakthroughs are reflected in two aspects:

- Dynamic Mailbox System: For mobile offline scenarios, relay nodes can cache messages for up to 72 hours, with unsent requests automatically synced once users come back online, ensuring interaction continuity;

- Governance Scalability: Supporting over 100,000 concurrent requests per second through a sharding architecture, laying the groundwork for large-scale commercial-grade applications in the future. Three, Token Economic Model: Governance Empowerment and Ecological Incentives

The WCT token is the value carrier and governance credential of the WalletConnect network, with its economic model designed to balance ecological incentives and long-term sustainability:

1. Token Distribution Mechanism:

- Total supply of 1 billion tokens, of which 27% is allocated to the foundation for ecological construction, 18.5% for community airdrops (released in phases), 17.5% as staking rewards, and the team and early supporters hold 18.5% and 11.5% respectively, both with a 4-year unlocking period and a 1-year lock-up period.

- Initial circulation is strictly limited, with only the airdrop portion and staking rewards gradually released to avoid early liquidity excess impacting the market.

2. Value Capture Scenarios:

- Governance Voting Rights: Holders can participate in key decisions such as protocol upgrades and fee model adjustments, for instance, the 'token transferability' vote initiated in March 2025 was community-driven;

- Node staking incentives: Service node operators need to stake WCT to obtain message processing rights, where the amount staked is positively correlated with their revenue weight;

- Transaction fee discounts: Using WCT to pay for on-chain interaction fees can enjoy up to a 30% rate discount, promoting a positive cycle of token demand and network usage.

3. Yield Enhancement Mechanism:

- Liquidity mining: Providing WCT/USDT liquidity on partnered exchanges like Binance can earn additional token rewards, with initial APY reaching 180%-250%;

- Ecological airdrop capture: 15% of protocol revenue is used to repurchase and destroy WCT, while leading DApps (like Uniswap and Aave) promise to airdrop governance tokens to WCT stakers, forming a compound yield effect.

Four, Market Dynamics: Exchange Layout and Ecological Expansion

1. Exchange Listing Strategy:

- Binance launched WCT mining through Launchpool on April 11, allowing users to stake assets like BNB and FDUSD to share in 185 million airdrop tokens and officially launch 5 trading pairs on April 15 at 19:00 (UTC+8);

- Secondary exchanges such as OKX and Bybit are synchronously following up, planning to open spot trading in late April, forming a multi-tier liquidity network.

2. Ecological Cooperation Progress:

- Launched an on-chain governance module based on Layer 2 in collaboration with Optimism, reducing Gas costs by 90%;

- Integrating Chainlink oracles to provide real-time status verification for cross-chain message transmission, preventing replay attacks.

Five, Risks and Challenges

1. Regulatory Compliance Pressure:

- In 2024, due to US sanctions restricting Russian IP access, the community raised questions about the protocol's 'pseudo-decentralization,' and subsequent balance between regulatory requirements and censorship resistance is needed;

- There is uncertainty regarding the tax assessment of staking rewards in multiple countries, which may affect institutional participation willingness.

2. Token Unlock Risk:

- Tokens for the team and early investors will gradually unlock starting in 2026; if ecological growth is below expectations, it may trigger a sell-off wave;

- The phased release of airdrop tokens (2025-2028) may lead to continued market pressure.

Six, Future Outlook: From Connection Protocol to Web3 Entry Point

According to the roadmap, WalletConnect plans to launch the following features in Q3 2025:

1. Smart Contract Wallet Integration: Supports ERC-4337 account abstraction, allowing users to recover accounts via social means and conduct gasless transactions to lower usage barriers;

2. Decentralized Identity Layer: Building an on-chain reputation system based on WCT to achieve credit score interoperability across DApps;

3. Enterprise-level API Services: Providing compliant on-chain interaction solutions for traditional financial institutions, expanding the B-end market. The value logic of the WCT token is rooted in the underlying demand for Web3 infrastructure—**standardization, security, and composability**. With the explosion of multi-chain ecosystems, WalletConnect is expected to become the core pipeline connecting billions of users with DApps. However, its market cap ceiling not only depends on the ability to implement technology but also must be wary of the dual challenges of token economics design and regulatory environment. Investors should focus on the actual adoption rate post-mainnet launch and the process of governance decentralization, capturing the key nodes of the protocol's transition from tool layer to ecological layer. Link https://www.binance.com/zh-CN/bnb

Binance registration link: https://accounts.marketwebb.club/zh-CN/register?ref=HTJ54VJ1