WalletConnect rebrands to Reown, introduces WCT utility token

As part of its rebranding efforts, WalletConnect has introduced its native token called Connect Token.

WalletConnect, known for its connectivity protocol for decentralized applications, has announced a major rebranding and the launch of its own native token, Connect Token (WCT), with the aim of transitioning to a decentralized model.

We are introducing the Connect Token (WCT), the native token of the WalletConnect Network.

WalletConnect Network is an on-chain UX ecosystem that enables apps and wallets to deliver better on-chain experiences to over 23 million users.

As the network continues to decentralize, WCT will play a key role in… pic.twitter.com/S6EvvPmKAu

— WalletLink (@WalletLink) September 17, 2024

WalletConnect Inc. (now rebranded as Reown) explained in a blog post on September 16 that its token will serve multiple functions, including enabling network governance, rewarding participants, and supporting staking mechanisms.

“WCT owners can propose, discuss and decide on the introduction of fees through governance mechanisms as a long-term economic model of the network. These can be used by projects to pay for network services, such as relay usage, for example.”

To have again

The rebranding as Reown and the introduction of WCT are part of WalletConnect’s broader decentralization strategy, which begins with an upgrade to version 2 of its protocol in 2023 and the addition of several node operators. The Connect Token will be launched on Optimism’s OP mainnet, with 18.5% of its initial supply set aside for airdrops. Registration for these airdrops will open on September 24, with more details to be released soon.

WCT’s initial supply is capped at 1 billion tokens, with allocations ranging from 7% for core development, 17.5% for rewards, 18.5% for airdrops, 18.5% for the team, 11.5% for early backers, and 27% for the WalletConnect Foundation. Reown says its token economics model does not currently include inflation mechanisms, as the current version “intends to focus on using existing token allocations and fee structures to support network operations and incentivize participation.”

WCT will enter its first release cycle in 2024, with transferability features planned for a later date. Until then, token holders will be able to engage in network governance and staking, but will not be able to transfer tokens between wallets. The WalletConnect Foundation will facilitate community discussions to determine the timeline for enabling transferability.