Worldcoin (WLD) Tokenomics

Issuance Mechanism and Supply

The Worldcoin (WLD) token was initially issued as an ERC-20 token on the Ethereum blockchain, with a total token supply of 10.00 billion WLD.

• Fixed Supply Period: The total supply is fixed at 10 billion for the first 15 years following the launch.
• Inflation Mechanism: After the initial 15-year period, an inflation rate of up to 1.50% can be configured, subject to governance decisions.
• Cross-Chain Status: As of March 6, 2024, approximately 164.04 million WLD (about 1.64% of the total supply) has been bridged to Optimism as ERC-20 equivalent tokens. User grant distributions primarily occur on Optimism, requiring WLD to be bridged there first.

Allocation Mechanism

The 10.00 billion WLD total supply is allocated across three main categories: Community, Tools for Humanity (TFH) Investors, and the TFH Team.

Community Allocation Breakdown (75.00% of Total Supply)

The 7.50 billion WLD allocated to the Community is further divided for specific purposes:

• User Grants: Worldcoin aims to distribute at least 6.00 billion WLD (60.00% of the total supply, or 80.00% of the Community Reserve) as user grants to Orb-verified individuals.
• Operational Costs: Approximately 1.00 billion WLD (10.00% of the total supply) is earmarked to fund operational costs, including market operation support, sequencer and uniqueness service operation, bug bounty programs, and Orb Operator rewards.
• Ecosystem Fund: Approximately 500.00 million WLD (5.00% of the total supply) is earmarked for the Ecosystem Fund, which supports Protocol R&D, Orb R&D, audits, certification, ecosystem grants, incentive programs, and Worldcoin Foundation operations.

Usage and Incentive Mechanism

The WLD token serves multiple functions within the Worldcoin ecosystem, primarily focused on rewards, governance, and funding operations.

Rewards and Incentives

• Orb-Verified Users: Any individual successfully verified by an Orb device is entitled to a 1.00 WLD welcome grant and 25.00 WLD in recurring grants. These user grant distributions occur on Optimism. Governance can configure user grants to decrease over time or be phased out entirely.
• Orb Operators: Operators who provide verification services are rewarded in WLD.
• Ecosystem Contributors: The Worldcoin Foundation has launched a grants program, setting aside 2.00 million WLD for participants contributing to the protocol across various tracks. The project also runs a bug bounty program with rewards ranging from $200.00 to $5,000.00.

Token Utility

The WLD token has three primary functionalities:

1. Rewards: Distributed to ecosystem participants, including Orb-verified users and Orb Operators.
2. Operational Funding: Used to fund operational costs for developing and bootstrapping the Worldcoin ecosystem.
3. Governance: WLD is intended to grant tokenholders governance rights in the future, though community governance is not yet live.

Potential future uses, once community governance is established, could include payments within the World App or other World ID-compatible wallets, or using WLD to signal approval for causes or initiatives.

Locking Mechanism and Unlocking Time

The allocations for the TFH Team and TFH Investors are subject to specific lock-up and vesting schedules designed to ensure long-term alignment with the project.

TFH Team and TFH Investor Allocations

Both the TFH Team and TFH Investor allocations are subject to the same vesting schedule:

• Lock-up Period: A 12-month lock-up period post-launch (or after the investor exercises their token warrants).
• Vesting Schedule: Following the initial lock-up, tokens are subject to linear daily unlocks over 24 months.

Community Reserve Allocation

A portion of the Community Reserve is earmarked to fund operational costs, including an unspecified amount for Worldcoin Foundation staff. These allocations are also subject to a 12-month lock-up post-launch, followed by linear daily unlocks over 24 months.

Note: Specific, detailed token unlock data for Worldcoin was not available.