Decentralized blockchain bridge Wormhole (W) has made a significant update to its tokenomics structure and launched a new system called “Strategic Wormhole Reserve.”
This reserve aims to collect both on-chain and off-chain protocol revenues and lock them in the W token reserve, thus preserving the long-term value of the token.
According to the company’s statement today, thanks to the reserve, different income channels in the ecosystem, namely the Wormhole protocol, the Wormhole Portal that provides multi-chain connectivity, and other applications, will be gathered in one center.
The new plan will not only preserve staking rewards but also offer additional return opportunities to investors who participate in management and actively use the applications. Wormhole Portal users, in particular, will be able to earn points to increase their staking returns. The targeted base return rate is set at 4%.
The team argued that returns will be generated from the existing token supply and protocol revenues, without inflation. The total supply will be capped at 10 billion W tokens, as is currently the case.
Under W 2.0 Tokenomics, which will take effect in October, the annual “annual cliff” unlocks, which previously led to a large volume of token releases, will be eliminated. Instead, small, regular token releases will be held every two weeks to reduce market pressure.
The new distribution model includes guardian nodes, community investors, and strategic network participants, while the Wormhole Foundation treasury will continue its four-year plan. Furthermore, core developer tokens will remain locked under contractual guarantees.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/developers-of-this-altcoin-announced-they-will-establish-a-reserve-for-their-own-tokens/
