Token Airdrop by Wormhole: Everything You Need to Know
Wormhole, a decentralized messaging protocol connecting different blockchains, has recently launched the much-anticipated W token airdrop. Despite high expectations, the airdrop has left some community members feeling let down.
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The buzz began on March 6 with Wormhole's revelation of the W token airdrop, capturing the attention of 397,704 users eligible by the February 6 snapshot.
Initial glitches with the token eligibility website for EVM-compatible accounts were quickly resolved, rekindling users’ hopes of claiming their “Eligible for W” status.
In an unexplained move, Wormhole restricted platform access for Ukrainian users, a hurdle that can be circumvented with a VPN.
Boasting the largest funding round of 2023, securing $225 million and valuing the company at $2.5 billion, Wormhole's airdrop could potentially be the biggest giveaway of 2024. Airdrop recipients were awarded between 1,000 to 16,000 W tokens. Considering the token's pre-market trading price of approximately $1.5, the airdrop could result in earnings ranging from $1,500 to $24,000 for the recipients.
Airdrop Criteria
A whopping 617,305,000 W tokens, constituting 6.17% of the total supply, were earmarked for the community: 500 million for protocol's active users and 117.305 million for members of Wormhole's Discord channel, various NFT collections, and projects, including:
- Monad community members;
- The top 10,000 Pyth network stakers;
- Holders of NFT collections like DeGods, y00ts, and Mad Lads.
The latter group was allocated 16,000 tokens each, with 3,200 being accessible at the Token Generation Event (TGE) and the remainder unlocking gradually over the year.
Activity metrics considered by Wormhole included:
- Interaction duration;
- Total number and volume of transactions;
- Consistency of usage;
- Engagement within the Wormhole ecosystem..
Networks, applications, and communities interacting as criteria for the Wormhole airdrop. Source: wormhole.com: wormhole.com
Unlike the explicit criteria seen with other airdrops, such as StarkNet, Wormhole's less transparent approach resulted in discrepancies where some users received between 8,000 to 10,000 W, while others, with comparable activities, were excluded.
I was a wormhole fan, not any longer now. I did more then 50 transactions. I used more then 14 chains, including eth. My first transaction was more then a year a ago. More then 8k volume. I staked pyth tokens. I am a top 2000 discord user in wormhole. I have rifter role. I used every day zealy. I used phantom, metamask, keplr and martian wallet. And I am not eligable??? How is this possible?
— a Wormhole Discord user, CryptoLunatic.
The average allocation per account stood at 1,552 tokens. This skewed distribution raised concerns over a small number of wallets potentially dominating the token's issuance.
Wormhole has yet to formally address the community's grievances. However, the precedent set by StarkNet's token lockup revision suggests a possible course correction.
Those believing they meet the airdrop criteria yet were overlooked can appeal via a designated form.
Wormhole Tokenomics
The W token is designed for decentralized governance within Wormhole, enhancing Wormhole DAO participants' decision-making capabilities regarding the project's trajectory.
W holders are expected to engage in votes affecting:
- The integration or removal of blockchain connections;
- Updates to Wormhole smart contracts;
- Adjustments to ecosystem product fees;
- The introduction of new Guardians (akin to protocol validators).
W complies with the SPL standard on the Solana blockchain and ERC-20 standards on Ethereum, Arbitrum, Optimism, and Base networks. With a total issuance of 10 billion tokens, 1.8 billion were available at TGE, with the balance unlocking over four years.
W's allocation spans six categories:
- Guardians — 5.1%. Ensuring message verification across Wormhole. No tokens in this category would be available at TGE.
- Community and Launch — 17%. 6.17% for the airdrop and the rest likely intended for exchange listings, with about 65% accessible at TGE and the vesting of the remaining 35% commencing after four months.
- Core Contributors — 12%. Rewarding organizations instrumental in Wormhole's development, with no immediate token availability at TGE.
- Ecosystem — 31%. Fostering developer community, new initiatives, and research. The amount of tokens at TGE will be 5% of the total W supply.
- Strategic Participants — 11.6%. Investment funds, private investors, and technical partners, with no tokens unlocked at TGE..
- Treasury — 23.3%. Reserved for the Wormhole Foundation, with 2% of the total supply unlocked at TGE.
Rather than detailed lockup data, Wormhole shared a visual vesting schedule, providing insights into each category's ownership over time.
W Token Distribution Chart. Source: wormhole.com
While specifics on token vesting remain scarce, Wormhole's visual distribution offers insight into each category's ownership evolution, revealing, for example, the community's significant initial token control shifting towards the ecosystem as vesting progresses.
Final Word
The TGE date remains unannounced by Wormhole, yet traditionally, a 1-2 week window follows between an airdrop announcement and the token's exchange listing. By comparison, StarkNet observed a 7-day interval, and Jito, an 11-day span.
Futures pricing for W fluctuated between $2-$2.5 three days preceding the airdrop announcement but has since adjusted to $1.6, as reported by Hyperliquid, a potential airdrop-poised exchange.
W-USD Futures Contract. Source: hyperliquid.xyz
W's future value leading up to its listing remains speculative. Therefore, thoroughly research before any investment.
Congratulations to all eligible for the Wormhole token distribution, and for those who missed out, stay tuned to our Telegram for future airdrops.
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