What Is WalletConnect Token (WCT) and the WCT Airdrop?

What Is the WalletConnect Token (WCT) Airdrop?

WalletConnect is airdropping 185 million WalletConnect Tokens (WCT) to the onchain community, with the first season, which includes an airdrop of 50 million tokens, now open for registration.

Register your wallet at https://airdrop.walletconnect.network/ by 18 October 2024 to create a profile and potentially be eligible for the first season airdrop.

Key Takeaways

• WalletConnect makes it easy for users to connect any supported crypto wallet to decentralized applications through an open-source connectivity network, where all interactions are encrypted to ensure the security of user accounts.

• The WalletConnect Network is decentralizing, and WalletConnect is launching the Connect Token (WCT), which will empower the network’s community of users, apps, and wallets to contribute to a better onchain future through shared incentives and governance.

• WCT will be launched on Optimism’s OP Mainnet, drawing on Ethereum’s security and the speed of OP Mainnet. 

• Registration for the first season of the WCT airdrop is open until 18 October, with an airdrop eligibility check slated for November 2024. Season two and subsequent airdrop seasons will take place from 2025.

This article is brought to you by WalletConnect.

Since its launch in 2018, WalletConnect has offered the crypto community an easy way to connect any supported wallets to decentralized applications across any blockchain. According to data from the project, WalletConnect has powered 150 million connections for over 23 million users, across 600 wallets, 40K app projects, and all chains.

The WalletConnect Foundation, along with other node operators and contributors of the network, is working along a roadmap that sets out to  unlock a fully open, permissionless, decentralized state for the WalletConnect Network. The WalletConnect Token (WCT), the native token of the network, will have various utilities such as enabling fee structures, reward structures, staking abilities, and acting as a governance mechanism for the WalletConnect ecosystem. 

What Is WalletConnect?

WalletConnect is an onchain UX ecosystem that enables users to connect their crypto wallets to dApps, regardless of whether users are on web or app. Its inception in 2018 solved a longstanding connectivity problem for the web3 ecosystem, making the network a long-used and critical piece of today’s onchain infrastructure. It connects user wallets to decentralized applications through deep linking and encrypted QR codes, where users scan the WalletConnect QR code to connect their wallet to dApps. WalletConnect facilitates the connection between wallet and dApp by obtaining application requests, and relaying them to the user’s wallet for approval, while protecting user data with end-to-end encryption while enabling seamless transactions.

The WalletConnect Network is fully chain agnostic. As the WalletConnect Network scales, it is moving to a fully permissionless model, and its native token, the Connect Token (WCT) will power governance, staking, rewards, and future fee structures after launch.

What Is WCT (Connect Token)?

The Connect Token is the native token of WalletConnect Network. According to the project, the WCT token will power the on-chain UX ecosystem and act as a reward and governance token. The WCT token will be minted on Optimism, a Layer 2 EVM-equivalent network on Ethereum, drawing on Optimism’s speed and Ethereum’s security. 

The supply of WCT is capped at 1 billion; 27% of the total supply will be reserved for the WalletConnect foundation while 18.5% will be distributed via airdrop to users and contributors who meet the requirements. The rest of the supply is allocated to the project team, reward programs, previous backers, and core development programs.

As the purpose of WCT is to support and enable network functionality and to grow the ecosystem, WCT will be a non-transferable token at launch. This is to ensure that the tokens remain within the ecosystem to serve their intended purpose, driving the long-term development and stability of the WalletConnect Network. Non-transferability allows WalletConnet to test all token functionalities before introducing transferability, while also mitigating other potential risks around early transferability.

In the future, the WalletConnect Foundation will facilitate discussions around enabling the transferability of the WCT token, which will be decided by voting WCT holders.

Utility of WCT

The WCT token will serve several purposes, including:

Fees

At time of writing, WalletConnect does not charge applications or SDKs fees for using the relay services. However, due to the cost of providing this service in a privacy-preserving and censorship-resistant manner, as WalletConnect does not sell data nor gatekeep the system, there may be a future implementation of a fee structure based on community governance. 

Note that based on information from the protocol, these fees will be paid for by the apps and SDKs, as they are the main beneficiaries of the connections. For users, they will not have to pay to make a connection, as user experience is key for WalletConnect. 

Rewards

WalletConnect will introduce a continuous reward program powered by the WCT token. 17.5% of the total supply is allocated to rewards, with 5% scheduled to be distributed in the first year. The reward program is designed to 

• Incentivize active participation in the network. 

• Encourage long-term commitment from participants. 

• Ensure network security and efficiency.

• Support the overall growth and sustainability of the WalletConnect ecosystem. 

The reward model covers key facets of the network, including nodes and wallets.

Node Rewards

Node rewards incentivize service node providers on the network based on their performance. Service nodes oversee the network’s storage layer, operating a consistent-hashing based distributed database to store and remit network data. Through the reward program, the Service nodes are rewarded with WCT tokens based on their performance and uptime. An initial non-transferable 100,000 WCT tokens will be distributed to service nodes, after which they will receive continuous rewards based on node activity.

Wallet Performance Rewards

Wallets that use the WalletConnect protocol can also earn rewards based on their performance. To benefit from the Wallet Performance Reward program, wallets must stake a minimum number of tokens into the protocol and perform at least 100,000 successful connections and signatures monthly. Wallet Performance Rewards can be adjusted according to the community’s decisions.

Staking

WCT token holders can participate in network governance and earn rewards in the process by staking their tokens. They can stake their tokens for periods from one week to two years, with weekly increments, where longer commitments will yield higher rewards. Once staked, tokens are locked up until the selected staking period expires, and there is an additional 7-day waiting period after the staking period has elapsed before they are returned to their owner. 

While manual restaking of tokens is already live, WalletConnect plans to introduce an automatic restaking feature to enable holders to restake their rewards for improved rewards.

Governance

To ensure transparency, decentralization, and community participation in the project’s administration, WalletConnect is instating a DAO powered by the WCT token. WCT token holders can participate in governance and shape the direction of the project by staking their WCT tokens, proposing changes, and voting on key issues.

The WalletConect Foundation will oversee the project’s administration in the first phase of governance, however, as the project progresses to further stages, the foundation will seed governance procedures to councils elected by the community. These councils will tackle different areas across partnerships, technological development, and overall administration. 

How to Register for the WCT Airdrop

WalletConnect aims to reward its users through the Connect Token airdrop, with 18.5% of the total supply dedicated to airdrops across multiple seasons. In the Season 1 airdrop, 50 million WCT (5% of the distribution) will be distributed to eligible users and contributors, with the rest of the airdrop allocations to be distributed in subsequent seasons. In Season 1, 40 million tokens (4% of total supply) will be distributed to users while contributors will receive 1% of the total supply.

Now, let’s look at how to register for the WCT airdrop.

Do note that registration does not guarantee eligibility.

1. Visit the airdrop page at https://airdrop.walletconnect.network/

Always cross-check the website link for authenticity.

2. On the airdrop page, click Register Here from the bottom left corner to continue.

3. Click Connect Now to proceed.

4. Select your wallet or connection medium and proceed to connect your wallet.

Wallets that support WalletConnect are recommended for this process.

5. Complete your connection and proceed to sign a message confirming your ownership of the wallet.

6. Once this is completed, your airdrop profile will be created.

7. You can proceed to link your GitHub account and other wallets by clicking Link GitHub or Add Address respectively.

If you are connecting to the airdrop page via WalletConnect, refer to this article for a guide on how to use WalletConnect.

The registration program for the airdrop event commenced on September 24, 2024, and will run until October 18, 2024. Participants will be able to check their eligibility from November 2024.

Eligibility Criteria for WCT Airdrop

There are different eligibility criteria for WCT airdrop participants. Meeting these criteria improves participants' chances of benefiting from the airdrop, although this doesn’t guarantee eligibility.  

Activity as a User

• Eligibility for the user category will be assessed according to the following activities.

• Connections to decentralized applications through the WalletConnect protocol across supported networks.

• Number of transactions signed through WalletConnect protocol.

• Overall on-chain activity for the connected wallet(s).

Activity as a Contributor

Eligibility for the contributor category will be assessed according to the following activities.

• Contributions to CAIPs (Chain Agnostic Improvement Proposals). CAIPs are blockchain developments and innovations whose relevance is not limited to a single blockchain network.

• Contributions to EIPs (Ethereum Improvement Proposals). EIPs are proposed development for the Ethereum network.

• Usage of EVM SDKs (Software Development Kits).

• Usage of non-EVM SDKs is also considered in this category.

• Open-source projects that positively impact the on-chain ecosystem are also considered in the contributor category.

Note that the snapshot for the Season 1 WCT airdrop was taken on September 1. Only activities completed before this time are considered for the first phase of the airdrop.

Conclusion

As a connectivity protocol, WalletConnect has served millions of users and provided a primary connection medium for decentralized applications. With the launch of the WCT token, WalletConnect aims to empower its community of users, apps, and wallets to contribute to a better onchain future through rewards and decentralizing governance. The upcoming Season 1 airdrop is designed to not only reward dedicated users, but also to create a base community on which the project will thrive.

When connecting your wallet to any airdrop portal, always do your own research and ensure that you are interacting with the legitimate site. This article is only for informational purposes and should not be taken as financial advice.