Worldcoin (WLD) is designed with a complex supply model and phased allocation, but faces criticism for distribution inequality and selling pressure. Here is a detailed analysis based on related data # 🔢 1. Distribution & Token Allocation
Total WLD supply remains 10 billion tokens with the following allocation:
Percentage | Number of Tokens | Unlock Period
| Community: 75%
| TFH Investors: 13.5%
| Early Developer Team: 9.8%
| TFH Reserves: 1.7%
- Critical Notes:
- Only 12.5% of community tokens (1.5B WLD) are unlocked in the first year, while 100% of team and investor tokens are locked until July 2024.
- After 15 years, governance may add annual inflation of up to 1.5%.
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⚠️ 2. Key Issues in Tokenomics
a. Supply-Demand Imbalance
- Oversupply: The launch of 143 million tokens at the beginning (43 million for users, 100 million for market maker loans) created selling pressure.
- Limited Utility: Tokens are only used for biometric verification (World ID) and governance, without adequate staking or DeFi incentives. As a result, long-term demand is weak.
b. Centralization Risk & Insider Advantage
- 25% of tokens are allocated to "insiders" (team + investors), potentially flooding the market during the unlock period. Early investors like Sam Bankman-Fried (FTX) also add to concerns.
- Only 32.17% of tokens (3.22B WLD) are circulating as of May 2025. A total of 6.78B WLD is still locked and will be gradually released until 2038.
c. Regulatory Pressure
- Iris scanning processes are banned in Spain, South Korea, and elsewhere due to data privacy. This hinders adoption and reduces token utility.
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📅 3. Vesting Schedule & Potential Impact
- 2024-2026: Large unlock for the team and investors (285.35M WLD for investors + 207.14M WLD for the team).
- 2027-2038: 6B WLD for the community will be released gradually each year.
- Risk: A wave of sell-offs could pressure prices, especially if demand does not match new supply.
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🚨 4. Criticism & Recovery Projections
- Main Criticism:
- The tokenomics model is considered "not understanding crypto dynamics" with a large insider allocation and minimal holding incentives.
- Biometrics contradict the principles of decentralization and crypto privacy.
- Recovery Conditions:
- Improvements in tokenomics (e.g., burning or staking mechanisms).
- Collaboration with regulators on biometric issues.
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💎 Conclusion
WLD tokenomics faces three major challenges: distribution inequality, limited utility, and regulatory risk. While the "proof of personhood" vision is innovative, the absence of balanced economic incentives and selling pressure from insiders raises doubts about long-term prospects. Recovery depends on fundamental revisions of the token model and transparency of biometric data. $WLD #Tokenomics
