The controversial biometrics project Worldcoin is transitioning to paying out rewards to its operators solely in its native WLD token rather than stablecoins like USDC. The move aims to boost WLD distribution but has also impacted its price.
Keypoints
- Worldcoin will start rewarding its Orb operators exclusively in its native WLD tokens rather than USDC stablecoins starting in November.
- This change is part of a “transitional phase” as Worldcoin shifts to broader WLD distribution.
- Currently WLD tokens are unavailable to people/companies in the US and some other restricted areas.
- Worldcoin extended loans of 100M WLD to market makers that were set to expire Oct 24th – now extended to Dec 15th but reduced to 75M WLD.
- Market makers will return or buy back 25M of the WLD loan amount as part of the agreement.
- This loan repayment adjustment may reduce WLD’s circulating supply by up to 25M on Oct 24th.
- The shift to WLD rewards caused the token’s price to drop around 4% initially as more tokens enter circulation.
Starting in November, Worldcoin will cease using USDC for rewards and instead pay operators in WLD tokens for running its iris-scanning “Orbs” to verify users. This change is part of a “transitional phase” as Worldcoin moves to broader circulation of its token.
However, regulatory restrictions mean WLD remains unavailable for now to recipients in the United States and certain other areas. The shift already caused WLD’s price to drop around 4% as more token supply enters the market.
Worldcoin also announced an extension but reduction in WLD loans provided to market makers that were due to expire October 24th. The revised terms could reduce WLD’s circulating supply by up to 25 million when repayments are made in December.
While necessary for its growth, the moves have injected some volatility into the otherwise struggling WLD token since its mainnet launch in July. Worldcoin is still facing bans or restrictions in multiple countries over privacy concerns related to its iris scanning practices.
The project is clearly prioritizing broad distribution of its native token even if it means accepting some short-term pain. While regulatory hurdles remain, Worldcoin is forging ahead with its controversial plan to build a global identity layer on the blockchain, powered entirely by WLD incentives.
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