Wormhole Empowers W Token Holders with New Staking and Governance System
Wormhole, a leading cross-chain interoperability protocol, has introduced a groundbreaking staking and governance system for its token holders. The governance mechanism, known as MultiGov, is now live and operational across Solana, Ethereum, Arbitrum, Optimism, and Base chains.
Since its launch on June 6, the new governance system allows W token holders to actively participate in creating and voting on governance proposals. Users can now stake up to 100 million W tokens on EVM-compatible chains to engage in daily governance activities.
“This stake for governance feature marks a crucial milestone in decentralizing Wormhole,” stated the protocol. “It’s your chance to shape the future of the Wormhole DAO and platform through active participation in governance decisions.”
To engage in Wormhole’s delegated Proof of Stake governance model, token holders can stake their W tokens and delegate their governance power to a chosen representative. The staking process is flexible, allowing users to unstake or restake their tokens at their convenience.
Wormhole initially launched as a bridge facilitating cross-chain transfers between Solana and other blockchains in 2021. On June 6 alone, Wormhole processed close to 188,800 cross-chain messages and facilitated asset flows totaling $30 million, as per WormholeScan data.
With over 1 billion messages processed, $43 billion in cross-chain transfers, and support for 30 different blockchains, Wormhole’s MultiGov mechanism aims to streamline governance processes across multiple chains.
“By enabling users to vote from their preferred chain, we eliminate the barrier of high gas fees and complex fund movements,” noted Robinson Burkey, Wormhole’s co-founder. “This simplifies the process of cross-chain governance without incurring additional costs.”
Furthermore, Wormhole’s W governance token, launched in April, saw 6% of its total supply airdropped to more than 400,000 wallets. Despite facing a significant DeFi exploit in February 2022, resulting in a loss of $320 million, the project has rebounded successfully.
The current price of the W token has surged by 10% in the last 24 hours, reaching $0.68 on CoinGecko. Additionally, daily trading volume has spiked by 150%, indicating growing investor interest and confidence in Wormhole’s governance ecosystem.
In a related development, Wormhole’s W token has achieved a remarkable $2.5 billion market cap following the recent airdrop event, solidifying its position in the competitive crypto landscape.