Worldcoin rotates reward token scheme

After an initial phase of paying operator rewards in USDC, Worldcoin is transitioning to issuing these rewards in WLD tokens

article-image

Rokas Tenys/Shutterstock, modified by Blockworks

share

Crypto-based digital identity provider Worldcoin will transition operator rewards from USDC stablecoins to its WLD tokens starting next month.

Worldcoin had used USDC-based rewards as a temporary measure following its launch, a phase that’s now concluding. 

Issuing operator rewards in WLD will add to the increasing circulation of its native token.

The WLD token debuted with a modest circulating supply of slightly over 100 million WLD, the team said in a blog on Sunday. Its max supply is 100 times higher at 10 billion.

“This was due to the goal of creating a network of as many human beings as possible. To achieve this, the majority of the WLD token supply will be given to new and existing users in the form of user grants over the years to come,” it added.

Blockworks has reached out to Worldcoin about the criteria used for compensating orb operators.

Since its launch on July 24, the WLD token’s circulating supply has increased from roughly 100 million to over 134 million, representing 1.34% of the total. 

This rise is due to over 800,000 Orb-verified users claiming about 34 million WLD in free grants.

As of Oct. 22, the circulating supply of WLD includes 100 million tokens used for loans to market makers, around 34.3 million tokens given out as user grants and a little portion earned as operator rewards, the team said.

WLD’s circulating supply is expected to decrease on Oct. 24 because the market makers are due to return up to 25 million WLD from their initial 100 million WLD loan, as their agreement terms change.

They can choose to buy some tokens, but any amount not purchased will be deducted from the current supply, leading to a reduction.

The tokens are not available for use, purchase or access in the US.

Worldcoin was founded by tech entrepreneur Sam Altman, with the goal of creating a universal basic income system. 

The project uses a device called the “Orb” to scan individuals’ irises, with the aim that each free crypto grant goes to a unique person. 

These scans are conducted by operators who manage the Orbs, helping distribute Worldcoin globally by verifying human identity, an essential step in establishing a unique digital wallet for everyone, while curbing fraud.

The idea is to provide a form of financial equality and broad access to digital assets. However, the method — gathering biometric data — had sparks privacy concerns. 

Despite Worldcoin’s reassurances that it does not store any personal data after verification, critics worry about potential data breaches or misuse of sensitive iris information.

The project is currently facing global scrutiny, with regulators worldwide being apprehensive regarding the company’s handling of personal and biometric data.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screenshot 2024-05-23 091855.png

Research

Bitcoin L2s aim to boost scalability while preserving decentralization and security, unlocking a better user experience, and new avenues for Bitcoin-powered innovations. However, no existing Bitcoin L2 leverages the full security of Bitcoin.

article-image

Sponsored

As part of the #Breakout2024 plans, Radix has introduced Token Trek

article-image

House members ask Gensler to keep a “consistent and equitable approach” with ether ETF proposals after the agency approved spot bitcoin ETFs in January

article-image

Using old-world instruments to address crypto user experience challenges goes against what this industry set out to do

article-image

And, weeks of a potential crypto ETF decision are no stranger to chaos

article-image

The FIT21 Act marks the second crypto-focused piece of legislation to advance in Congress this month

article-image

More than half of Solana transactions fail