Wormhole (W): Revolutionizing Asset Mobility and Cross-Chain Data Exchange

Modified on Tue, 23 Sep at 6:53 PM

What is Wormhole?

Wormhole is a leading communication layer for cross-chain interoperability. It enables various decentralized applications (dApps) to transfer data and tokens across multiple blockchains such as Ethereum, Solana, Sui, Injective, and many others. This addresses the challenges of cross-chain functionality with a focus on security, scalability, and transparency.

Simplified Diagram of Wormhole's Structure – ที่มา Wormhole

What problems does Wormhole solve?

Interoperability is a significant challenge in the blockchain world. Blockchains have traditionally operated in isolation, limiting the potential of applications running on different ecosystems. Wormhole addresses this by facilitating communication between blockchains. This creates a smoother experience and allows developers to build multichain applications that can leverage the unique features of each network.

Key problems that Wormhole helps address:

Blockchain isolation: Wormhole connects different blockchains, enabling the transfer of assets, data, and governance actions across networks.

Cross-chain complexity: Wormhole simplifies the complexities of cross-chain communication, making it easier for developers to build and deploy cross-chain applications.
Security and decentralization: Wormhole prioritizes security through a decentralized network of Guardians that verify and sign messages, ensuring the integrity of cross-chain interactions.

Examples of Wormhole in action:

Cross-chain exchange: Using Wormhole Connect, developers can build exchanges that allow deposits from any network connected to Wormhole. This significantly increases access to liquidity.
Cross-chain governance: Wormhole can be used to create NFT collections on different networks. It acts as a bridge to communicate voting decisions made on one network to the relevant "voting" network.
Cross-chain gaming: Games can be developed across various high-performance networks. For example, a game built on Solana could reward players with NFTs on a different network like Ethereum.

Wormhole (W) Token Distribution

W is the native token of the Wormhole Protocol, supporting multichain applications and allowing holders to participate in governance and decision-making. Initially designed to connect Ethereum and Solana, it has expanded to encompass over 30 blockchains and enables communication between more than 200 applications.

The tokenomics of W include distribution to strategic stakeholders such as:

Guardian Nodes
Community and launch projects
Core contributors
Ecosystem and incubation efforts
Strategic network participants
Foundation treasury

These allocations encourage active participation from various ecosystem players in the governance and development of the network.

Key details:

Maximum Supply: 10,000,000,000 W
Initial Circulating Supply: 1,800,000,000 W
Token Standard: Native ERC20 and SPL (utilizing Wormhole's native token transfer standard)
Locked Tokens: 82% of W tokens initially, with unlocks occurring over a 4-year period according to a predefined schedule

Wormhole Token Distribution

Here's how Wormhole tokens are allocated:

Guardian nodes (5.1%): Guardian nodes provide the primary verification mechanism for Wormhole, playing a crucial role in the network's overall security.
Community and Launch (17%): This portion is dedicated to the community and supporters. 1% of this allocation is unlocked at Token Generation Event (TGE) for initial distribution and related activities.
Core contributors (12%): Reserved for the core teams contributing to the engineering, product, infrastructure, growth, and operations of the Wormhole platform.
Ecosystem and Incubation (31%): Allocated to strategic contributors to the Wormhole ecosystem, including the community, developer community, strategic supporters, and more.
Strategic network participants (11.6%): Allocated to strategic network participants who contribute to the long-term success and stability of the network through private sales. These participants include strategic investors, builders, technical partners, and long-term funds with deep crypto expertise in governance and network scaling.
Foundation treasury (23.3%): This allocation is intended to drive various key initiatives such as future interoperability research, funding ecosystem teams through the Wormhole Foundation's xGrant program, supporting the developer community, funding operational expenses, and other relevant programs.

Interesting Price Information for W

As of 28 February 2025, data from CoinMarketCap shows that the W token has a market capitalization of $388,846,956, approximately 13,088,781,514 THB.

At the time of writing, W is trading at approximately $0.1348 or around 4.60 THB per token. W reached its all-time high of $1.61, or 54.95 THB per token, on 4 April 2024.

References