Worldcoin has unveiled plans to remunerate its Orb Operators with its proprietary Worldcoin (WLD) tokens. Therefore, the project moves away from the USD Coin (USDC) compensation model. This change is anticipated to take effect as early as November 2023.
Unveiling a New Worldcoin Remuneration Paradigm
Worldcoin delineated its intent to transition Orb Operators—”independent ecosystem participants”—to a new payment structure. Under this paradigm, scanning individuals’ irises, a pivotal part of the Worldcoin ecosystem, would earn operators WLD tokens instead of the previous USDC payments. This transition, slated to commence in November, is expected to permeate most legal jurisdictions.
Worldcoin characterizes this maneuver to reward orb operators exclusively in WLD tokens as a “transitional phase”, after its official inception on July 24. Fast forward to October 10. The Worldcoin Foundation propelled a pilot initiative to endow select operators with remuneration in WLD tokens. They envisage the culmination of this transitional process by November 2023. Moreover, after this date, all operators will receive payouts in WLD tokens.
It’s noteworthy to mention that currently, Worldcoin tokens are off-limits for individuals or corporations domiciled in the United States and certain other delineated restricted territories.
Scrutinizing Worldcoin’s Token Supply Dynamics
Data extracted from Worldcoin’s official Dune Analytics dashboard manifests a burgeoning supply of the WLD token. It escalated from an initial 100 million to approximately 134 million today.
An insightful dissection of the 134 million WLD tokens disseminated thus far reveals that 100 million were allocated as loans to market makers. The residual 34 million were apportioned to Orb operators and new users as “free user grants.”
Worldcoin disclosed five market-making entities as recipients of the 100 million WLD loans. These are initially slated to mature on October 24, 2023. However, a subsequent announcement divulged an extension of this maturity date to December 15. Curiously, that includes a trimmed loan amount of 75 million WLD. The market makers have the prerogative to either return or acquire some or all of the outstanding 25 million as part of the accord.
Transitioning from a recognized and stable reward like USDC to a native, potentially volatile token such as WLD may raise eyebrows. It propels us to ponder on the sustainability of the Worldcoin ecosystem. The crux of the concern lies in the demand for WLD. If it doesn’t measure up, users may be unable to convert their earnings into more preferred currencies. This transition, albeit strategic, beckons a period of vigilant observation and analysis for stakeholders within and outside the Worldcoin ecosystem.
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