What is WalletConnect Token (WCT)?

Deep Dive

1. Purpose & Value Proposition

WCT is integral to the WalletConnect Network, an "onchain UX ecosystem" powering connections for over 23 million users across 600 wallets and 40,000 apps. The token transforms the widely-used WalletConnect protocol from a product into a permissionless, community-owned network. Its core purpose is to align incentives, decentralize governance, and ensure the network's long-term sustainability by empowering its community of users, apps, and wallets.

2. Tokenomics & Core Utilities

The token has a capped total supply of 1 billion. Its utilities are focused on decentralizing the network:

• Governance: WCT holders vote on proposals, guiding the network's evolution, including future fee models and council elections.
• Staking: Users can lock tokens for set periods to earn rewards from a dedicated pool, contributing to network stability.
• Rewards: A significant portion of the supply (17.5%) incentivizes participants like wallet providers and node operators based on performance.
• Fees: While not yet active, the community may later implement fees paid in WCT for network services like relay usage.

Conclusion

Fundamentally, WCT is a governance and coordination token designed to decentralize the critical infrastructure that connects the entire Web3 ecosystem. As the network matures, how effectively will community governance leverage WCT to balance incentives, sustainability, and user experience?