Crypto Project Wormhole Unveils Tokenomics Upgrade W 2.0: Exploring Implications for Token Value, Returns, and Distribution in the Digital Assets Sphere
Wormhole, the interoperability protocol connecting multiple blockchain networks, has announced a series of updates aimed at creating a healthier market environment and aligning incentives for its users and stakeholders.
The most notable change is the shift from annual token unlock cliffs to bi-weekly unlocks, starting from October 3, 2025. This adjustment is designed to reduce market pressure by providing a steady and predictable flow of tokens, thereby reducing the likelihood of concentrated selling events and smoothing market behaviour.
The new structure of Portal Earn, a feature introduced by Wormhole, allows active users to boost their rewards by using multichain applications. This link between protocol adoption and user benefits is expected to encourage greater engagement and adoption of the Wormhole ecosystem.
The Wormhole Reserve, which will gather revenues from Wormhole, Wormhole Portal, and related applications, will play a crucial role in supporting W holders and growing the ecosystem value. The Reserve will pool both onchain and offchain revenues for this purpose.
Another significant change is the extension of the lock schedule for core contributors and validators. They will remain locked for an extra six months, ensuring their alignment with the protocol until October 2028. This extended lock schedule aims to foster long-term alignment between stakeholders and the protocol.
Staking W for governance will continue to earn a 4% base yield, with the funds for this yield coming from the supply and revenues of the W token, not through new issuance or inflation. In line with this, no new inflation is planned in the W token economy.
The total W supply remains capped at 10 billion tokens. These updates are intended to make W's supply dynamics easier to track and less disruptive, giving holders more confidence in the supply dynamics of W tokens.
The goal of these adjustments is to link protocol growth directly to token value, creating a closed loop where network growth feeds into value accumulation, potentially supporting price stability. The changes aim to give holders more confidence in the Wormhole ecosystem and its long-term sustainability.
