- The circulating supply of WLD tokens has increased from 100M to over 134M since its launch, influenced by user grants to more than 800,000 Orb-verified users.
- Market maker loan agreements have been renewed until December 15, 2023, with a reduced total loan amount, which may lead to a decrease in the circulating supply by up to 25M WLD.
Since the inauguration of the WLD token on July 24, 2023, there has been a noteworthy influx of activity within the Worldcoin ecosystem. More than 800,000 new and existing users, verified through Orb technology, have collectively claimed approximately 34M WLD in free user grants. This initiative has consequently propelled the circulating supply from an initial 100M to just above 134M WLD, accounting for 1.34% of the 10 billion total supply.
Circulating Supply and Market Maker Dynamics
The WLD token made its debut with a calculated circulating supply slightly above 100M WLD. This approach aligns with Worldcoin’s strategic vision to foster a vast network encompassing as many individuals as possible. Anticipating future expansion, a substantial portion of the WLD tokens is earmarked for distribution to both new and current users in the form of user grants over the ensuing years.
As of the current date, October 22, 2023, the circulating supply comprises: (a) 100M WLD allocated as loans to market makers, (b) approximately 34.3M WLD acquired through claimed user grants, and (c) a modest quantity of WLD received by Operators as Operator rewards.
Market Maker Loan Agreements: A Strategic Renewal
At the inception of the WLD token, World Assets Ltd., a subsidiary of the Worldcoin Foundation, forged loan agreements with five market makers operating outside of the United States. This strategy aimed to guarantee ample liquidity for WLD on centralized exchanges abroad, contributing to price discovery and stabilization.
These market makers collectively received 100M WLD in loans, set to mature on October 24, 2023. World Assets Ltd. has resolved to prolong these agreements until December 15, 2023, albeit with a decreased total loan amount of 75M WLD. All other contractual terms remain intact.
On the stipulated date, October 24, 2023, the market makers are poised to return 25M WLD of the existing loan. Alternatively, they hold the option to acquire any token amount up to the loan return quantity. The purchase price per WLD is derived from a predefined formula, as outlined in the original agreements.
In consequence, October 24th will witness a potential reduction in circulating supply by up to 25M WLD, contingent on the market makers’ purchasing decisions.
Operator Rewards and WLD Circulation
Worldcoin Operators, integral to the ecosystem, facilitate the verification of user uniqueness and humanity through specialized devices known as Orbs. Initially rewarded in USDC, these Operators are transitioning to receive their compensation in WLD.
A pilot program initiated on October 10, 2023, marked the commencement of WLD rewards distribution to select Operators. This shift contributes to the gradual increase in WLD’s circulating supply. By November 2023, the Worldcoin Foundation anticipates the completion of this transition, with all Operators receiving WLD as rewards, subject to the token’s availability in respective countries.