WalletConnect ($WCT): Foundation of Web3 Connectivity

WalletConnect Token (WCT) is the native asset of the WalletConnect network, serving as its utility and governance coin. The WalletConnect network is a chain-agnostic protocol that enables users to connect their crypto wallets to decentralized applications (dApps) across many different blockchains. Since its launch in 2018, WalletConnect has facilitated over 150 million secure connections for millions of users, spanning hundreds of wallets and thousands of dApps.

WCT was introduced in early 2025 on the Optimism blockchain. WCT serves multiple roles: it provides governance rights to the community, funds and secures the network, and incentivizes participants. The introduction of WCT marks a new phase of decentralized governance, giving the community a direct stake in WalletConnect’s future.

What is WalletConnect?

WalletConnect is an open-source connectivity protocol designed to make the Web3 user experience more seamless. It lets wallets and apps interact through an encrypted, push-based messaging system triggered by scanning a QR code or deep linking. Being fully chain-agnostic, WalletConnect supports all major blockchain ecosystems including Ethereum (and its Layer 2 networks like Optimism), Solana, Cosmos, Polkadot, and Bitcoin. The protocol’s goal is to remove friction in how users connect wallets to dApps, bridging networks behind the scenes so users don’t have to worry about which chain they are on.

WalletConnect’s core infrastructure is built on several key components:

• Decentralized Database (Rendezvous Hashing): The network uses a distributed database architecture based on rendezvous hashing. This allows messages to be routed and stored in a fault-tolerant way without relying on any single server or central point of failure.

• Service and Gateway Nodes: A global network of nodes operates the protocol. These service nodes and gateway nodes relay encrypted messages between wallets and apps, ensuring that requests and transaction data are securely transmitted.

• End-to-End Encryption: All communication in the WalletConnect network is end-to-end encrypted. This means that only the connected wallet and the dApp can see the contents of each transaction or message, protecting user privacy and security.

How Does WalletConnect Work?

1. Connecting with QR Codes: When a dApp wants to interact with a user’s wallet, it displays a WalletConnect QR code. The user scans this code with their WalletConnect-compatible wallet app or browser extension. This step establishes an initial link between the wallet and the dApp.

2. Relay Messaging: Once connected, the WalletConnect network relays messages between the dApp and the wallet in real time. A relay server (or a decentralized network of nodes) carries transaction requests from the application to the user’s wallet.

3. Encrypted Communication: All messages carried by the relay are encrypted. This ensures that no outside parties (including the relay operators) can read the transaction details or wallet addresses. Only the intended recipient can decrypt the messages.

4. Cross-Chain Compatibility: WalletConnect works across multiple blockchains. Even if the user’s wallet is on one chain (e.g. Ethereum) and the dApp is on another (e.g. Solana), the protocol handles the connection seamlessly. The user experience remains the same: scan a code and sign transactions, without needing separate tools for each blockchain.

This approach has made WalletConnect a critical piece of Web3 infrastructure. By abstracting away the complexities of multi-chain connectivity, it empowers any wallet to safely interact with any compliant dApp across the crypto ecosystem.

WalletConnect Token (WCT): Utility and Tokenomics

The WalletConnect Token (WCT) is the native token of the WalletConnect network. It was launched in early 2025 on the Optimism blockchain. WCT serves multiple roles: it provides governance rights to the community, funds and secures the network, and incentivizes participants.

WCT has a fixed maximum supply of 1 billion tokens. The supply is distributed across various categories to support growth and long-term stability. Key allocations include:

• WalletConnect Foundation (27%) – Held by the foundation to fund development grants, ecosystem projects, and operations.
• Airdrops (18.5%) – Reserved for seasonal airdrop programs to reward early users, contributors, and partners.
• Core Team (18.5%) – Allocated to the project team and early contributors (subject to long-term vesting).
• Staking & Performance Rewards (17.5%) – Set aside to incentivize service node operators, wallet developers, and other active network participants through rewards.
• Previous Backers & Partners (11.5%) – Allocated to early backers and partners (also vested over time).
• Core Development (7%) – Dedicated to ongoing development efforts and technical initiatives.

Token allocations for team members, backers, and development are subject to a multi-year vesting schedule (typically a 4-year unlock with a 1-year cliff). This design encourages long-term commitment and aligns stakeholders with the network’s success.

WCT’s launch featured an “ecosystem-first” approach. The token began life as non-transferable, meaning holders could not send it externally at first. This ensured that early WCT tokens remained within the WalletConnect system, encouraging participation in governance and staking without market speculation. After the community achieved key network milestones, governance was activated and WCT became fully transferable across wallets and platforms.

Because WCT is capped at 1 billion, it is non-inflationary by design for the first few years. No new WCT tokens will be minted in the first 3–4 years. If additional funds are needed later, the community can vote on introducing new issuance or changing the supply. This democratic approach ensures that any future token inflation would only occur with the community’s consent.

WCT Utility and Ecosystem Roles

WCT is at the heart of the WalletConnect ecosystem. The token’s uses include:

• Governance: WCT holders form the basis of the network’s governance. By staking their tokens, they can propose and vote on key decisions such as protocol upgrades, funding proposals, or changes to economic parameters. Over time, as WalletConnect decentralizes, governance will shift from the foundation to community-elected councils. WCT holders will increasingly define the project’s direction.

• Staking and Security: WCT can be staked to help secure and support the network. Token holders can lock up their WCT for periods ranging from weeks to years. Stakers earn additional WCT as rewards for securing the network. Longer lock-up terms and higher stakes result in higher rewards, incentivizing strong commitment. The staking process also aligns holders with the protocol’s success, since staked tokens are locked until the staking period ends (with a short unbonding delay after).

• Rewards and Incentives: A significant portion of WCT is used to reward active contributors. Service node operators (which run the infrastructure) earn WCT based on their performance and uptime. Wallets and app developers can also qualify for WCT rewards by contributing to the ecosystem. In total, 17.5% of the supply is dedicated to staking and performance rewards. These rewards help bootstrap and maintain the network’s infrastructure and promote participation.

• Fees and Ecosystem Usage: WalletConnect’s core services currently operate without user fees, keeping the protocol easy to use. However, WCT provides the flexibility to introduce fee structures in the future. For example, one proposed model is a usage-based fee (such as a “monthly active user” fee) for applications or SDKs using the relay service. Any such fees would be designed to be paid by the benefiting applications, so that end users do not pay to connect. All fee proposals would be subject to community governance votes.

• Airdrops & Ecosystem Growth: The airdrop allocation (18.5% of total supply) is being used to distribute WCT to the WalletConnect community over multiple seasons. These airdrops reward long-time users, developers, and partners who have supported the ecosystem. For example, early distribution rounds have granted tens of millions of WCT to eligible participants based on their involvement. Airdrops help bootstrap engagement and ensure a broad, decentralized base of token holders from day one.

Collectively, these functions make WCT integral to WalletConnect’s growth. By aligning incentives for network operators, developers, and users, the token helps ensure sustained development and active participation across the ecosystem.

The Future of WalletConnect and WCT

WalletConnect has laid out a multi-phase roadmap toward a fully decentralized, scalable network. In early phases, the focus is on solidifying the foundation: launch of the mainnet, staking, and a permissioned node network. Future phases aim to add advanced features like permissionless service nodes, user identity provisioning, app and wallet NFTs, sponsored transactions, and novel incentive models for wallets and apps. Each phase brings the protocol closer to a trustless, community-driven infrastructure — with decentralized governance, open validation, and tokenomics controlled by network stakeholders.

As the network evolves, WCT will remain at its core. Community-driven governance will gradually take over day-to-day decisions, supported by elected councils overseeing areas like partnerships and development. This decentralized approach ensures that decisions about WalletConnect truly reflect the needs of its users and participants.

Conclusion

In summary, WalletConnect is a critical part of the web3 infrastructure, enabling seamless cross-chain interactions. With the introduction of the WCT token, WalletConnect transitions to a community-powered model. WCT holders gain a voice in governance, earn rewards for securing the network, and help finance the protocol’s growth. As the ecosystem matures and expands, WCT will play an essential role in sustaining and scaling the infrastructure that connects wallets to dApps across the crypto universe.