WCT Token Economic Model: Balancing Incentives and Risks
WCT has a fixed supply of 1 billion tokens, with 18.5% allocated for airdrops and 17.5% for staking rewards. The high annual yield for staking (85%) relies on inflation release, creating a risk of an internal cycle of 'mining, withdrawing, and selling'—currently, 100 million WCT are staked, with 40,633 addresses participating, but over 50% of the rewards come from token issuance. If governance fails to introduce a burning mechanism, it may trigger a death spiral. It is necessary to accelerate the implementation of payment functions and shift towards an income-driven model.
