On April 3rd, Wormhole announced a new development roadmap, expanding to all EVM chains through native token transfers (NTT). Holders can lock and delegate W tokens on both Solana and EVM chains.
Prior to this, Binance is scheduled to list Wormhole (W token) at 12:00 a.m. on April 3 (UTC) with the Seed tag. Spot trading pairs available for trading include W/BTC, W/USDT, W/FDUSD, and W/TRY. Withdrawal time is set for 12:00 a.m. on April 4 (UTC). OKX and Bitget platforms also announced the listing of W token at the same time.
What is Wormhole?
Wormhole is a cross-chain bridge protocol that allows asset transfer between blockchains such as Ethereum, Solana, Terra, Binance Smart Chain, Polygon, Avalanche and Oasis... The project solves the interoperability problem of decentralized applications dApps, smart contracts on many different blockchains, and help make the process of swapping tokens between blockchains easier and more convenient.The project, launched in August 2021, currently has a valuation of about $2.5 billion. The platform announced its airdrop and four-year tokenomics plan in February. According to the official announcement, Wormhole will use the “W” token with a maximum supply of 10,000,000,000 W. The platform expects 82% of the tokens to be locked up post-issue linearly over four years, leaving the original circulating supply The initial amount is $1.8 billion.
W token is used in the governance system of Wormhole DAO. Token holders have the right to vote on decisions such as adding or removing blockchains connected to Wormhole, upgrading smart contracts, changing fees...
Wormhole to airdrop W token on April 3rd to over 400,000 Covalent (CQT) staking addresses. In this airdrop, the project allocates 500 million W for on-chain activities and approximately 117 million for community users such as Discord members, NFT communities...
Wormhole's airdrop program aims to reward contributors shaping the ecosystem. Covalent is a blockchain data layer, one of the early supporters of Wormhole.
On February 3, 2022, Wormhole faced a cyber attack that caused a loss of about 120 thousand WETH (equivalent to $325 million at the exchange rate at the time the event took place). The hacker group took advantage of vulnerabilities in Wormhole's system, deceiving validators to issue large amounts of WETH on the Solana network, then transferred the cryptocurrency through many different routes for profit. The event increases the community's confidence in the security of the project.
Immediately after that, Jump Trading quickly approached and paid more than 120 thousand ETH to maintain Wormhole's operations. This partly resolves the damage to users, thereby strengthening the reliability of the project and showing the determination and responsibility of the management team.
On February 25, 2023, Jump Trading and the Oasis development team took advantage of the security vulnerability in Wormhole to recover $140 million from hackers. However, this action created a lot of controversy in the community, making many investors wonder about the immutability and honesty of blockchain when intervention from financial "giants" is increasingly common.
Characteristics of Wormholes
- Supports many blockchains: The project supports most blockchains on the market such as Ethereum, Solana, Terra, Binance Smart Chain, Polygon, Avalanche and Oasis... This helps users diversify their investment portfolio, allowing for experience and leverage the power of multiple DeFi protocols without the constraints of centralized solutions.
- Convert NFTs between blockchains: Wormhole provides a Wormhole NFT portal where users deposit NFTs into different blockchains. This opens up the possibility of diverse interactions with the NFT market without technical complications.
- Building dApps on multiple chains: The platform is not only limited to asset conversion but also provides infrastructure for developers who want to build dApps decentralized applications on many different blockchains. Thanks to Wormhole's flexible architecture, developers can build many decentralized exchanges that support Multichain, Multichain DAO, Oracle...
How it works
- Validator selection: Wormhole uses a select group of validators to secure token transfers between blockchains. Validators are hand-selected validating nodes and are often the leading staking service providers in the world such as Everstake, Certus One...
- Transaction verification: When users make a transaction, validators will take on the task of verifying the transaction. This process helps ensure accuracy and safety during the conversion of crypto assets.
- Lock native token: After verification, validators will lock the number of native tokens of the source platform (source chain) in the smart contract on the source blockchain. This makes the tokens unable to be moved or used on the source blockchain to increase security and avoid attacks from hackers.
- Mint wrapped token: Along with locking the native token, an equal amount will be minted as a representative asset (wrapped token) on the destination chain. This makes the token usable and interoperable on the target blockchain fast and convenient.
Wormhole products
Portal
Portal is a bridge solution created by Wormhole to support a variety of blockchains such as Ethereum, BNB Chain, Solana, Avalanche... Currently Portal Token Bridge is ranked 11th with large transaction volume within 24 hours on the rankings. of DefiLlama, reaching $2.6 million.
Carrier
Carrier is a bridge solution dedicated to moving tokens and NFTs across multiple blockchains. Currently, Carrier integrates 12 blockchains including Solana, Ethereum, BNB Chain, Polygon... Swap features and 2FA protection layer will be completed and introduced in the future. Outstanding functions of Carrier:- Comprehensive wallet dashboard: Gathers information about users' on-chain activity regarding tokens and NFTs.
- Fully functional interface: Allows investors to view, search and export entire transaction history.
- Predict transaction completion time: Provide information about expected transaction completion time automatically, creating an intuitive and reliable experience for investors.
- Simultaneous transactions: Possessing the ability to perform multiple bridge transactions at the same time helps speed up investment.
dApp developer support tools
Wormhole provides infrastructure for developers to build cross-chain bridge solutions, opening up creativity in decentralized application development.
Ecosystem
The project establishes a $50 million ecosystem development fund with many items. Below are some typical projects:- Bridge: Allbridge, Automata, Biconomy, Portal…
- DEX: Uniswap, Hashflow, Raydium, TraderJoe, Wombat…
- NFT: Degods, Audius…
- Gaming: Mobland, Sweatcoin…
- Oracle: Pyth Network…
- Staking: Lido…
- Stablecoin: Frax…
Tokenomics
- Token name: W
- Symbol: W
- Maximum power supply: 10,000,000,000 W
On KuCoin, the current floor price is 1.7 USDT, with the highest bid price for the W token at 1.62 USDT. The latest trading price reached 1.73 USDT. Market analysts predict the price range for the listing on major exchanges of the W token to fluctuate between $1.25 and $1.7.
See more: W token price prediction
Token allocation
- Running transaction validation node: 5.1%, equivalent to 510,000,000 W
- Community and token issuance: 17%, equivalent to 1,700,000,000 W
- Ecosystem and funding round: 31%, equivalent to 3,100,000,000 W
- Core Contributor: 12%, equivalent to 1,200,000,000 W
- Network participants: 11.6%, equivalent to 1,160,000,000 W
- Foundation fund: 23.3%, equivalent to 2,330,000,000 W
Roadmap
Launch on Solana
The W token is introduced as a native SPL token on Solana, laying the groundwork for rapid multi-chain development. Solana's high-performance ecosystem becomes the ideal environment for the W token, ensuring scalability, low costs, and instant transaction processing.EVM expansion with Wormhole NTT
Following the launch on Solana, W expands to all EVM chains using Wormhole NTT. NTT enables seamless token conversion between Solana, Ethereum mainnet, and Layer 2 without liquidity fragmentation, while maintaining utility on Wormhole. This helps the project maintain full control over tokens operating on each chain, ensuring security measures.NTT is an open-source framework designed for token conversion across blockchains without the need for liquidity pools. With NTT, projects have full control over token operations on each chain, including token standards, metadata, ownership or upgrades, and various custom features. Platforms maintain specific control over security aspects such as rate-limiting, pausing, access control, and balance computation.
Lock W tokens for self-delegation
Token delegation is a crucial aspect of on-chain governance. Holders can lock and delegate W tokens on both Solana and EVM chains. This allows investors to participate in governance by voting or providing additional voting weight to others (often influential and reputable individuals). Before allowing delegation, the Wormhole development team sends notifications, ensuring token holders have enough information to participate in the governance process.Multi-chain governance
Wormhole DAO, consisting of W token holders, operates through a multi-chain governance system. This mechanism will be available on Solana, Ethereum mainnet, and Layer 2 EVM upon launch.Multi-chain governance allows token holders on all supported chains to create, vote on, and execute governance proposals. The goal is to maximize DAO participation by providing a user-friendly interface. Contributors to Wormhole hope this will mark the beginning of a fully community-led decentralized process.
By developing W token flexibly, the Wormhole development team ensures a safe development process under user control, building a better future for token holders and the blockchain community.
Wormhole is a multi-tasking cross-chain solution with a variety of blockchain-enabled features. The project makes converting tokens and NFTs to enhance the interoperability of dApps and smart contracts between blockchains easier and more convenient. However, investors need to research carefully before participating because Wormhole once suffered huge losses due to security errors.