cryptopotato.com
The Worldcoin Foundation has announced its plans to strategically transition its Orb device operators’ payments from $USDC to the native $WLD tokens.
This decision comes as the circulating supply of $WLD tokens surpasses 1% of its total token supply of 10 billion tokens.
$WLD Token’s Rise to 1% Circulating Supply
The Worldcoin Foundation intends to remunerate orb operators responsible for enrolling individuals into the Worldcoin network by utilizing $WLD tokens instead of $USDC stablecoins.
According to the announcement, the foundation expects to finalize this transition within the coming month. This development coincides with the $WLD token’s circulating supply surpassing 1% of its total supply of 10 billion tokens.
Since its launch on July 24, 2023, the circulating supply of the $WLD token has consistently grown from over 100 million $WLD, driven by the Foundation’s dedication to establishing an extensive user network.
As of October 22, 2023, the circulating supply includes 100 million $WLD tokens loaned to market makers, approximately 34.3 million distributed through free user grants, and a portion of coins awarded to Orb operators as incentives.
Market-maker agreements, particularly the renewal of agreements with World Assets Ltd., a subsidiary of the Worldcoin Foundation, play a significant role in influencing the token’s circulating supply. Initially, they made deals with five international market makers during the token’s launch.
A Closer Look at Market Maker Extensions
Initially, the market makers were granted loans amounting to 100 million $WLD, with an expiration date of October 24, 2023, as specified in the Worldcoin Whitepaper.
In a recent decision, World Assets Ltd. has extended these loan agreements until December 15, 2023. However, the loan amount will be reduced to 75 million $WLD, while all other terms of the agreements remain unchanged.
As a result, on October 24, 2023, the market makers will return up to 25 million $WLD of the outstanding loan. Additionally, they can purchase any quantity of tokens up to the amount being returned.
The following formula will determine the price per $WLD for this purchase: $2.00 + ($0.04 * X), where X represents the number of tokens being purchased divided by one million.
This renewal of market maker agreements with reduced loan amounts is expected to impact the circulating supply of $WLD tokens, reducing it by up to 25 million coins, depending on the market makers’ decisions regarding token purchases.