The Economic Model of a Decentralized Communications Network — $WCT
The $WCT
token is central to WalletConnect’s transition from a centralized protocol to a fully decentralized, community-owned network. Its tokenomics are crafted to support a secure and sustainable infrastructure for Web3.
The main utility of #WCT is staking by relayer nodes. Node operators must stake $WCT to participate in the network and relay messages between wallets and DApps. This acts as a security deposit, ensuring reliable, censorship-resistant communication.
Token value grows as network usage increases. A usage-based fee model is a likely path forward, where DApps or users pay micro fees in for relayed messages. These fees are distributed to stakers and node operators, providing direct financial incentive to maintain the network. As connections and interactions across Web3 expand, the volume of messages on WalletConnect will rise, boosting demand for for both staking and fee payments. Essentially, holding $WCT is an investment in the decentralized web’s communication layer.