Tokenomics de Worldcoin (WLD)

Worldcoin (WLD) is a digital asset designed to support a global proof-of-personhood network, with a focus on fair distribution, privacy, and incentivizing ecosystem growth. Below is a comprehensive breakdown of its token economics, including issuance, allocation, usage, incentives, locking, and unlocking mechanisms.

Issuance Mechanism

• Initial Supply: 10,000,000,000 WLD (ERC-20 on Ethereum).
• Fixed Supply Period: The total supply is capped at 10 billion for the first 15 years.
• Inflation: After 15 years, governance may activate an inflation mechanism, with a maximum annual inflation rate of 1.5%.
• Bridging: As of March 2024, ~164 million WLD (~1.64% of total supply) have been bridged to Optimism as ERC-20 equivalents.

Allocation Mechanism

• Community: The largest share, with at least 6 billion WLD (80% of the community reserve, or 60% of total supply) targeted for user grants.
• Team & Investors: Combined, the team and investors receive 25% of the total supply, reflecting the project's development and funding needs.

Usage and Incentive Mechanism

• User Grants:
  • Welcome Grant: 1 WLD for each new Orb-verified user.
  • Recurring Grants: 25 WLD per user, claimable after verification, with the amount decreasing over time.
  • Distribution: Grants are distributed on Optimism; unverified users can reserve grants and claim them upon verification.
• Orb Operator Rewards: Operators who verify users with the Orb receive WLD rewards. Operators are selected through a bidding process, incentivizing efficiency and engagement.
• Ecosystem and Operational Funding:
  • 1 billion WLD (10% of total supply) is reserved for operational costs, including bug bounties, community initiatives, and ecosystem development.
  • 500 million WLD (5% of total supply) is earmarked for an Ecosystem Fund to support R&D, grants, and liquidity.
• Governance: WLD will be used for governance, with a future model combining token-based and personhood-based (World ID) voting for sybil resistance and inclusivity.
• Other Uses: Potential for payments within the World App and other World ID-compatible wallets, subject to future governance decisions.

Locking Mechanism and Vesting

• Team and Investor Allocations:
  • Lock-up: 12-month lock-up period post-launch.
  • Vesting: After the lock-up, tokens unlock linearly on a daily basis over 24 months.
• Community Allocations:
  • Unlocked linearly over time, with monthly unlocks (e.g., 92.6 million WLD in September 2023, 95.8 million in October 2023).
• Operational and Ecosystem Funds:
  • Subject to similar lock-up and vesting schedules, with detailed vesting contracts available on Ethereum and Optimism.

Unlocking Time

• Start of Unlocks: July 24, 2023, with 10 million WLD beginning to vest.
• Monthly Unlocks: Community tokens are unlocked linearly each month, with specific amounts disclosed in advance.
• Team & Investors: Unlocking begins after the 12-month lock-up, then daily over 24 months.

Summary Table: Key Tokenomics Parameters

Additional Notes

• No ICO: There was no public ICO for WLD; distribution is primarily through user engagement and ecosystem participation.
• Concentration: As of March 2024, the top 10 Ethereum addresses hold ~91.5% of the supply, mainly in vesting and unlock contracts.
• Ecosystem Grants: Ongoing programs, such as the 50 million WLD developer grants, support ecosystem growth.

Implications and Considerations

• Decentralization: The gradual unlock and large community allocation aim to ensure broad distribution and minimize centralization risks.
• Incentive Alignment: The decreasing grant schedule incentivizes early adoption, while operator rewards and ecosystem funds support network growth.
• Governance Evolution: The planned transition to a DAO and personhood-based voting could set a new standard for sybil-resistant, inclusive governance.
• Supply Pressure: The linear unlock schedule is designed to mitigate sudden supply shocks, but significant unlocks may still impact market dynamics.

Worldcoin’s tokenomics are structured to balance fair distribution, ecosystem incentives, and long-term sustainability, with mechanisms in place to adapt as the network matures and governance decentralizes.