Worldcoin Tokenomics: Shaping the Future of Identity and Finance

In a rapidly evolving world characterized by technological innovation and artificial intelligence, establishing a global identity and financial network accessible to everyone has become a mission of paramount importance.

The Worldcoin project is at the forefront of this mission, striving to create the world’s largest public utility network, granting ownership to all while simultaneously laying the foundation for a future where AI plays a central role.

Mission

The Worldcoin project’s core mission revolves around constructing a global infrastructure for identity and financial transactions that serves as a public utility accessible to everyone. It acknowledges the increasing significance of AI in our lives and aims to establish a network that can seamlessly integrate with AI systems.

The specific goals associated with the Worldcoin (WLD) token within this mission include:

  • Distributing the majority of WLD tokens to individuals, merely for being unique humans.
  • Ensuring that the majority of the global population, including those alive today, receive WLD tokens, making it one of the most widely distributed digital currencies.
  • Using the WLD token, in conjunction with World ID, for protocol governance.
  • Building the foundation for the world’s largest privacy-preserving identity and financial network.

Token Overview

Launch Date: July 24, 2023

Network Information: Worldcoin (WLD) is an ERC-20 token on the Ethereum Mainnet, and individuals will receive their user grants on the Optimism Mainnet. Most WLD transactions are expected to occur on the Optimism network, with the option to bridge back to Ethereum through the Optimism bridge.

Initial Supply Cap: 10 billion WLD

Inflation: Up to 1.5% per year, with inflation potentially starting after 15 years. The protocol governance determines the inflation rate, with a default rate of 0%.

Circulating Supply: At launch, the maximum circulating supply will be 143 million WLD.

Acquiring Free WLD Tokens

Worldcoin has taken a unique approach to distributing WLD tokens. Subject to availability, anyone worldwide can download the World App and reserve user grants. To claim WLD, individuals must visit a physical imaging device called the Orb in person to verify their uniqueness and humanness. Availability of Orbs around the world can be checked.

Notably, WLD tokens are not available to individuals or companies residing in, located in, incorporated, or with a registered agent in the United States or certain other restricted territories. However, World ID and the World App remain available in the United States.

How Worldcoin Works

The heart of the Worldcoin system is World ID, a privacy-preserving global identity network. World ID empowers users to verify their humanity while preserving their privacy using zero-knowledge proofs. This is especially vital in a world where AI advancements make it increasingly challenging to distinguish between humans and AI on the internet.

World ID enables individuals to prove their unique human status to any platform integrated with the protocol, ranging from web3 systems to social networking sites and governmental programs. This capability facilitates fair airdrops, token/NFT sales, protection against bots and sybil attacks on social media, and equitable distribution of limited governmental resources.

World ID can also support global democratic processes, novel forms of governance (e.g., quadratic voting), and potentially contribute to AI-funded Universal Basic Income (UBI).

The Worldcoin token, WLD, together with World ID, grants users governance powers over the Worldcoin protocol.

Participation Process

To engage with the Worldcoin protocol, individuals must first download the World App, which supports World ID creation. Individuals visit Orbs, physical imaging devices, for Orb-verification to obtain an Orb-verified World ID. Most Orbs are operated by independent local businesses known as Orb Operators.

The Orb uses multispectral sensors to verify humanness and uniqueness, and all images are promptly deleted on-device by default, unless individuals explicitly consent to Data Custody. Holders of Orb-verified World IDs can claim recurring grants of free WLD tokens, subject to availability.

The Worldcoin Protocol is open-source and driven by a global community of developers, economists, and technologists focused on expanding participation and access to the Worldcoin ecosystem. The Worldcoin Foundation serves as the steward of the ecosystem and aims to support the community until it becomes self-sufficient and decentralized. Tools for Humanity (TFH) played a pivotal role in launching the Worldcoin project and operates World App.

Retrospective and Future Governance

The pre-launch phase of the Worldcoin project, spanning from May 2021 to July 2023, was a resounding success. Over 2 million individuals verified their World IDs at Orbs in over 30 countries during this period. These users have already received more than 43 million WLD tokens before the official launch.

Post-launch, the Worldcoin Foundation plans to roll out 1,500 Orbs to meet the global demand for World IDs. The WLD token is designed to have utility and governance properties, granting users a voice in shaping the protocol’s future. Additionally, the introduction of World ID lays the groundwork for innovative “one-person-one-vote” governance mechanisms alongside conventional “one-token-one-vote” systems.

Beyond governance, the community of users will determine additional use cases for the WLD token. It could be used for actions within the World App or other wallet apps, facilitating various payments (e.g., remittances, tipping artists, buying and selling goods and services), or signaling support for diverse causes and initiatives. In the long term, the WLD token may serve as a global store of value.

The Worldcoin Foundation is committed to progressively decentralizing governance and the ecosystem, and the majority of the WLD token supply will be distributed to participants in the Worldcoin protocol, empowering them as unique humans. This inclusive approach could make WLD one of the most widely distributed digital currencies.

The WLD Token

Launch Date: July 24, 2023

Network Information: Worldcoin (WLD) is an ERC-20 token on Ethereum Mainnet, with transactions primarily occurring on the Optimism network. A bridge to Ethereum is available through the Optimism bridge.

Upgradability: None, except for potential inflation after 15 years.

Token Allocation Entity: World Assets Ltd., a subsidiary of the Worldcoin Foundation based in the British Virgin Islands

Initial Supply Cap: 10 billion WLD

Inflation: Up to 1.5% per year, which can begin after 15 years and is determined by protocol governance.

Token Allocation:

  • 75% to the Worldcoin Community, with most tokens allocated to users and some for the ecosystem fund and network operations.
  • 9.8% for the Initial Development Team.
  • 13.5% for TFH Investors.
  • 1.7% as TFH Reserve for future needs.

The Worldcoin Foundation governs the allocation of these tokens, progressively decentralizing token management decision-making in alignment with its Articles of Association.

Unlocked Supply Schedule

The unlocked supply schedule emphasizes that team and investor tokens are locked at launch, while tokens claimed by users are not. Governance will determine the rate at which WLD tokens from the Worldcoin Community category are introduced into the circulating supply, contingent on factors like the growth of Worldcoin users. This creates an upper limit on the maximum circulating supply.

In conclusion, Worldcoin’s vision is to democratize ownership and provide global access to a secure and privacy-preserving identity and financial network. By deploying a unique approach to token distribution, coupled with a robust governance system, the project aims to empower every unique human in the world, making the WLD token one of the most widely distributed digital currencies.