Crypto

Wormhole's W Token Yields 999% Weekly, Faces 30% Price Drop

Wormhole introduces governance token with a debut at $1.66, reaching a $2.98 billion market cap on Solana's DEX.

By Max Weldon

4/4, 03:52 EDT
Bitcoin / U.S. dollar
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Key Takeaway

  • Wormhole's W token offers 999% weekly returns on Kamino by pairing with JitoSOL, with rewards over $7,000 daily.
  • The liquidity pool's capacity is $7.5 million, currently holding just under $5 million and generating $17,000 in fees from $6 million trading volumes.
  • Despite the high returns, W's price dropped almost 30% in 24 hours; broader crypto market down by 1.24%.

Wormhole Launches Governance Token

Wormhole, a key player in the cross-chain bridge sector, has recently launched its governance token, W, marking a pivotal moment for its ecosystem. The token made its debut at $1.66 on the Solana-based decentralized exchange (DEX), OpenBook, with an impressive initial market capitalization of $2.98 billion. This launch not only signifies Wormhole's entry into the governance token arena but also showcases the token's potential with a fully diluted value of $16.5 billion, as reported by CoinGecko. The introduction of the W token has generated significant market interest, highlighting the community's anticipation and the project's promising future.

Market Response and Allocation

The release of the W token led to considerable congestion on OpenBook, indicating a high level of demand and excitement from the market. This congestion underscores the community's eagerness to engage with Wormhole's new governance token. In terms of allocation, 6% of the total supply was distributed through an airdrop to early users of Wormhole, rewarding them for their early support and participation. Furthermore, 12% of the supply has been earmarked for core contributors, and 23.3% is allocated to the foundation's treasury. This distribution strategy aims to balance the development needs of the project with the empowerment of its governance structure.

Multichain Governance Innovation

One of the most notable aspects of the W token is its introduction of a "first ever" multichain governance system. This system allows token holders to delegate their W tokens for governance votes across Solana and compatible Ethereum-based chains. This innovative governance model exemplifies Wormhole's dedication to decentralization and inclusivity, enabling wider participation in decision-making processes across different blockchain ecosystems. The ability to delegate tokens for governance purposes on multiple chains is a significant step forward in the evolution of blockchain governance, offering a more flexible and accessible approach for token holders.