Worldcoin’s highly anticipated launch has captivated the crypto community, but it has also sparked debates and controversies due to its ambitious objective of creating a global identity network through unique methods, like eye scans. As the dust settles, a report from Kaiko sheds light on some of the intriguing aspects of Worldcoin’s launch.
Worldcoin’s Tokenomics & Supply Details
The initial supply cap of Worldcoin’s native token (WLD) stands at a substantial 10 billion units. However, the maximum circulating supply at the launch is a modest 143 million WLD, with 100 million tokens allocated to market makers operating outside the U.S.
The remaining 75% of the total supply belongs to the “Worldcoin Community,” 13.5% to investors, and 10% to the development team. Investor and development tokens are locked for the first 12 months after the launch and will be gradually unlocked over the following 24 months.
Worldcoin’s tokenomics have confused many, with intricate distinctions between “circulating” and “unlocked” supply, inflation, vesting rates, and unclear language. Presently, only about 1% of the total supply is circulating, primarily through market makers.
The launch itself witnessed a remarkable level of orderliness. Bybit and Huobi were among the first exchanges to list WLD, with Huobi experiencing minor hiccups before quickly converging with Bybit’s trading.
Uniswap followed suit, with its price eventually aligning with other centralized exchanges after some divergence. Notably, Binance’s listing caused a surge in volatility, leading to a significant increase in trading volume.
The uniqueness of the launch lies in the involvement of five market makers, who received loans of 100 million WLD for three months. This dynamic anchor WLD’s price around $2, encouraging users to participate in the identity verification process to claim 25 WLD tokens.
Analyzing the liquidity across exchanges, it appears that despite significant loans to market makers, WLD’s liquidity remains relatively low, especially compared to other launches with similar arrangements. It raises questions about the team’s strategy and valuation of the token, given the challenge of incentivizing users to participate in a developing network.
Nevertheless, as the project progresses, the crypto community will closely observe its impact on the global identity network landscape and its potential to revolutionize digital identity verification.
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