NOIDA (CoinChapter.com) — Wormhole has announced plans to distribute 1.7 billion W tokens through an airdrop. The initiative is part of the protocol’s broader strategy to enhance its decentralized governance framework and engage its user base actively.
With a total issuance of 10 billion W tokens, the airdrop represents a significant part of the total token supply. Wormhole claims the airdrop aims to foster a more inclusive and participatory ecosystem.
Eligibility for the Wormhole Airdrop
The Wormhole team determined the eligibility criteria for the airdrop by a previously taken snapshot of wallet addresses that have interacted with the Wormhole network.
However, the project has not publicly detailed the specific parameters defining interaction and eligibility. Wormhole emphasized that the eligibility criteria relied on past engagement with the network’s services. The method aims to ensure that the airdrop benefits active participants within the Wormhole community.
Wormhole’s W token remains unlisted at writing. However, users are trading W tokens on the Bybit pre-market, with W prices nearing $2.5. With Wormhole airdrop totaling 1.7 billion tokens, the total value of the airdrop comes at a staggering $4.25 billion.
The Wormhole airdrop will occur in stages, with the project dropping 1.1 billion tokens initially. The initial airdrop would come close to $2.8 billion. Wormhole will airdrop the remaining 600 million tokens over the next few months.
The introduction of the W token and its distribution through the airdrop are critical components of Wormhole’s governance model
Interestingly, W price in pre markets has jumped nearly 500% from $0.56, the token’s price level when the token traded in the perpetual futures markets.
However, airdrops often lead to bearish reversals for a token, as recepients sell their loot to book profits, which could result in W prices dropping once the token launches.
What Is Wormhole
Wormhole is a decentralized, universal message-passing protocol that facilitates blockchain interoperability, enabling different blockchains like Ethereum, Binance Smart Chain, Terra, Solana, Polygon, Avalanche, and Oasis to communicate.
Moreover, the project claims to address the challenges of moving tokens between blockchains without relying on centralized exchanges and allows decentralized applications (DApps) and smart contracts on different blockchains to interact, promoting interoperability.
A guardian network of 19 nodes ensuring secure cross-chain communication for tokens, NFTs, and other data facilitates Wormhole’s core functions. The Wormhole airdrop will introduce and familiarize users to the functionality.
W is the native token of the project, with a total supply of 10 billion tokens. To clarify, the community airdrop will allocate 17% of the total supply to users, rewarding their engagement and support. In addition to the Wormhole Airdrop, the team has assigned 23.6% of the total supply to the core contributors and strategic partners.
Additionally, Wormhole has designated 5.1% to entities responsible for maintaining the network’s security and reliability. Lastly, the project has set aside 54.3% of its total token supply for ecosystem maintenance and foundation treasury.
