Worldcoin releases tokenomics report with geofencing restrictions.
Worldcoin releases tokenomics report with geofencing restrictions.
The Tokenomics of Worldcoin: A Comprehensive Overview of the Blockchain Industry
The Worldcoin (WLD) project recently released the tokenomics details after the launch of its mainnet. However, there have been reports of difficulty accessing the site by CoinDesk reporters in several countries. The company is currently investigating this issue. Despite this hurdle, one CoinDesk reporter was able to access the tokenomics site and gather some details, which have been confirmed by a Worldcoin representative.
Tokenomics is a term used in the blockchain industry to refer to the economics and mechanics behind a cryptocurrency or token. It encompasses various aspects such as token supply, distribution, inflation, governance, and allocation. Understanding tokenomics is crucial for investors, users, and developers in evaluating the potential value and viability of a blockchain project.
The Worldcoin Project and Token Distribution
The Worldcoin project has generated significant anticipation, with the distribution of beta tokens to users verified using its iris-scanning Orb technology. These beta tokens act as IOUs, representing a promise of tokens upon the network launch. After updating the app, verified users receive a 25 WLD “genesis grant” to their wallets, but only in countries where regulations permit such grants, excluding the U.S. This approach ensures compliance with different jurisdictional requirements.
The token has witnessed substantial price surges on top exchanges, indicating a high demand from traders and investors looking to capitalize on its potential growth. This suggests a significant level of market confidence in the project.
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Token Supply and Governance
Worldcoin has implemented a capped supply of 10 billion tokens for a duration of 15 years. This means that no additional tokens will be created beyond this limit, ensuring scarcity and potentially driving up the value of the token. However, after 15 years, the governance of the network can decide to introduce an inflation rate of up to 1.5% and determine the allocation of newly minted tokens.
At the launch of the mainnet, the maximum circulating supply of WLD is set at 143 million tokens. Of these, 43 million will be allocated to pre-launch verified users, and 100 million will be given as loans to non-U.S. market makers with a three-month expiration period. This distribution strategy aims to incentivize participation and liquidity in the early stages of the network.
Token Allocation and Lock-up Periods
In terms of token allocation, 75% (7.5 billion tokens) will be earmarked for the community, supporting grassroots adoption and distribution. Tools for Humanity investors will receive 13.5% (1.35 billion tokens) as a reward for their early support. The initial development team will be allocated 9.8% (980 million tokens) for their contributions to the project. Additionally, 1.7% (170 million tokens) will be kept in reserve for unforeseen circumstances.
To address the complexity and increased costs of developing and launching the network, the allocation to insiders has been adjusted from the initial plan. The current allocation for investors and team tokens will be 25% (2.5 billion tokens) instead of the initially stated 20%. These tokens will be locked up at launch and will gradually be released over the first year and the following two years. This approach aims to align the incentives of insiders with the long-term success and stability of the network.
It is important to note that all 7.5 billion tokens allocated to the community have been minted before the launch. The foundation intends to allocate 6 billion of these tokens to users, but they will be unlocked gradually over a period of 15 years. Notably, none of the tokens allocated to users are currently locked up, according to a Worldcoin representative. Further details about the allocation of the remaining 2.5 billion tokens for insiders are yet to be disclosed.
Conclusion
In conclusion, the tokenomics of the Worldcoin project provide a comprehensive framework for understanding the distribution, governance, and allocation of the WLD token. The project has faced challenges regarding accessibility to the tokenomics site, but efforts are ongoing to address this issue. With a capped supply of 10 billion tokens and carefully planned token distribution, Worldcoin aims to create a vibrant and engaged community while incentivizing early supporters and insiders. As the blockchain industry continues to evolve, projects like Worldcoin are shaping the future of decentralized finance and global economic systems.
