In a strategic move aimed at enhancing liquidity, market stability, and sustainability, Worldcoin has unveiled pivotal developments affecting its WLD token ecosystem. These updates come on the heels of significant user engagement since the token's launch on July 24, 2023.
Expanding Circulating Supply
The remarkable growth of the Worldcoin community has seen over 800,000 Orb-verified users successfully claim around 34 million WLD in free user grants. This has led to a gradual expansion of the circulating supply, which now stands at a robust 134 million WLD. Notably, this constitutes 1.34% of the 10 billion total WLD token supply, underscoring the project's commitment to fostering a broad network of users.
Market Maker Loan Agreement Renewal
One of the most prominent announcements pertains to the renewal of market maker agreements. At the token's launch, World Assets Ltd., a subsidiary of the Worldcoin Foundation, initiated agreements with five market makers situated outside of the United States. These agreements aimed to ensure liquidity for WLD trading on centralized exchanges worldwide while fostering price stability.
Initially, these entities received loans totaling 100 million WLD, with the loans set to expire on October 24, 2023, as outlined in the Worldcoin Whitepaper. World Assets Ltd. has now decided to extend these agreements, albeit with a reduced loan amount of 75 million WLD. All other terms of the agreements will remain unchanged. On October 24, 2023, the market makers will return 25 million WLD of the currently outstanding loan, providing them with the flexibility to either return tokens or purchase additional tokens. The purchase price per WLD will be calculated according to a specific formula: $2.00 + ($0.04 * X), where X represents the number of tokens being purchased, divided by one million.
This extension allows for continued market support and liquidity provision for WLD, with the circulating supply set to decrease by an amount up to 25 million WLD, contingent on the market makers' decisions.
Operator Rewards Transition
The transition in the way Operator rewards is disbursed is another integral facet of Worldcoin's evolving ecosystem. Operators play a crucial role in verifying the uniqueness and humanness of individuals within the network. Historically, these rewards were paid in USDC. However, as of October 10, 2023, the Worldcoin Foundation initiated a pilot program, granting rewards to select Operators in WLD. This transition signifies a move from USDC to WLD rewards for all Operators, with completion anticipated by November 2023.
This change contributes to the growth of the circulating supply of WLD and offers increased utility for Operators who actively participate in the Worldcoin ecosystem.
These developments underline Worldcoin's commitment to optimizing its token ecosystem's health, from the perspective of liquidity, market stability, and distribution of rewards. As we move forward, we'll be closely monitoring how these changes impact the token's market dynamics and overall growth trajectory. For more detailed information and live metrics on Operator rewards, readers are encouraged to consult the "Worldcoin Whitepaper" and the "Dune" platform.