If you want to learn more about technology, performance, advantages, and limitations, you can refer to https://walletconnect.network/. This article will only share personal perspectives on the tokenomics of the project.
Tokenomics of WCT
The tokenomics of WCT is designed to support the development and sustainability of the WalletConnect network. Below are the key details:
Total Supply: 1 billion WCT (fixed).
Token Allocation:
Core Development: 7% (dedicated to protocol development and related modules).
Rewards: 17.5% (for staking and incentivizing performance).
Airdrop: 18.5% (distributed seasonally to users, wallets, applications, and nodes).
Team: 18.5% (allocated to the Reown and WalletConnect team).
WalletConnect Foundation: 27% (supporting growth, funding, and partnerships).
Early Supporters: 11.5% (for early investors and partners).
Non-Inflationary: The initial design does not use an inflationary mechanism for token distribution. However, the community may propose inflation in the future through decentralized governance if needed to ensure sustainability.
Staking: Users can stake WCT to earn rewards and participate in governance. Token lock-up periods range from 1 week to 2 years, with a 7-day unbonding period. An auto-locking system for staking renewal is also supported.
Airdrop: The first airdrop season (Season 1) distributes 50 million WCT, with 30 million for the community, 10 million for independent contributors, and 10 million for strategic partners.
Limitations and Risks
Lack of Transparency in Tokenomics: The project has not yet disclosed detailed token release schedules or initial market capitalization, which may raise concerns for investors.
High Price Volatility: WCT experienced significant price drops (42% in 2 days in May 2025), indicating high risk and susceptibility to market manipulation due to low market capitalization.
High Competition: WalletConnect competes with other protocols like MetaMask. Negative Market Sentiment: Current technical indicators (as of June 30, 2025) show a bearish market sentiment, with 14/15 technical indicators signaling a sell. This could lead to further short-term price declines.
Limited Security Audit Reports: Only one publicly available security audit report exists, which may reduce confidence in the protocol’s safety.
No Service Fees Yet: While the network is currently free to use, the introduction of service fees in the future could impact user experience and market adoption.
Conclusion and Recommendations
WalletConnect is a robust project with a significant role in the Web3 ecosystem, supported by strong technology and a large user base. WCT holds long-term potential due to its governance, rewards, and staking functions, but it currently faces risks from price volatility, lack of transparency in tokenomics, and negative market sentiment.Recommendations:
Long-term Investors: WCT could be considered a potential investment if you believe in the growth of Web3 and WalletConnect’s role in it. However, monitor updates on token release schedules and service fee implementations.
Short-term Investors: Given the current market sentiment and downward price trend, exercise caution and wait for key support levels (around $0.17) before entering.
Users: Continue leveraging the WalletConnect network to connect wallets and dApps, and participate in airdrop programs (like Season 1) to receive free WCT.
Note: The cryptocurrency market is highly volatile, and investing in WCT should be based on personal research, risk tolerance, and long-term financial goals. Always verify information from official sources like the WalletConnect website or project documentation before making investment decisions.If you need a deeper analysis of specific aspects (e.g., technical details, tokenomics, or investment strategies), please let me know!
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