Worldcoin Adjusts Token Supply and Loan Agreements
Worldcoin has announced changes to the distribution of its circulating WLD token supply and market maker loan agreements. The project, which launched in July, will reduce loan amounts to market makers and will begin rewarding operators with WLD instead of USDC.
Increase in Circulating Supply
The circulating supply of WLD tokens has increased to nearly 134 million, up from the initial 100 million. This increase is attributed to over 800,000 new and existing users claiming approximately 34 million tokens through free grants. To improve liquidity, Worldcoin provided 100 million WLD in loans to five market makers, with the loans set to expire on October 24, 2023.
Extension of Loan Agreements
The company, backed by Openai CEO Sam Altman, has extended the loan agreements until December 15 but has reduced the total loan amount to 75 million WLD. On October 24, market makers will have the option to return up to 25 million tokens or purchase them at a predetermined price, leading to a decrease in the circulating supply. In addition, rewards for operators of Worldcoin’s Orb iris scanners will switch from USDC to WLD in the near future.
Focus on User Grants
Worldcoin explains that the initial low circulating supply of WLD was intended to attract as many users as possible. The majority of the token supply will be distributed to new and existing users through user grants over time.
Concerns Over Centralization and Data Handling
While Worldcoin claims that its iris biometric database will prevent fraud and improve access to services like banking and voting, privacy advocates and governments have expressed concerns about its centralized nature and data handling practices. Data regulators in France, Kenya, and other countries have raised objections.
Expanding User Community
Despite its rapid growth, only 1.34% of Worldcoin’s total token supply of 10 billion is currently in circulation. The project aims to continue granting tokens to expand its user community. These recent adjustments aim to reduce the influence of market makers and provide better rewards for network participants.
Hot Take: Worldcoin Adapts Token Supply and Loan Agreements
In an effort to optimize token distribution and incentivize network participants, Worldcoin has made significant updates to its circulating WLD token supply and loan agreements with market makers. By increasing the circulating supply through user grants, adjusting loan amounts, and switching rewards from USDC to WLD, the project aims to foster a larger user community while addressing concerns over centralization and data handling. These changes demonstrate Worldcoin’s commitment to creating a more inclusive and sustainable ecosystem for its users.
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