Worldcoin has officially launched its protocol, World ID, WLD token, and World App globally where legally permitted. The WLD token is an ERC-20 token on the Ethereum mainnet, though users primarily receive grants on the Optimism network. This article breaks down the token’s allocation, release mechanics, and intended uses.
WLD Token Allocation
The total supply of WLD tokens is capped at 10 billion for the first 15 years, enforced by smart contracts. After this period, governance may decide to introduce an annual inflation rate of up to 1.5%. At launch, the maximum circulating supply is 143 million WLD:
- 43 million WLD allocated to users verified during the pre-launch phase.
- 100 million WLD loaned to market makers outside the U.S. (with a 3-month maturity).
The allocation breakdown is as follows:
- 75% to the Worldcoin Community: Mostly distributed to users, with portions reserved for the ecosystem fund and network operations. The Worldcoin Foundation will manage these allocations, gradually decentralizing governance.
- 9.8% to Initial Development Team: Tools for Humanity (TFH) and other service providers developed Worldcoin and continue to support the foundation.
- 13.5% to Tools for Humanity Investors: These backers funded the multi-year pre-launch phase.
- 1.7% to TFH Reserve: TFH retains this portion post-launch.
Notably, the initial allocation to TFH and the development team was increased from 20% to 25% due to the higher complexity and cost of responsibly launching the network.
Community Allocation Details
The Worldcoin Foundation will distribute community tokens across:
- User Grants (60%): Includes Genesis Grants (25 WLD), Welcome Grants (1 WLD for Orb verification, reducing over time), and periodic grants.
- Network Operations (10%): Covers Orb manufacturing, operations, market support, and bug bounties. Initially, some rewards are in USDC, transitioning fully to WLD.
- Ecosystem Fund (5%): Funds protocol R&D, Orb development, standards, audits, grants, incentives, liquidity, and foundation operations.
World Assets Ltd. loaned 100 million WLD to five market makers outside the U.S. These entities must repay or purchase tokens after three months at a formula-based price: $2.00 + ($0.04 * X), where X is the number of tokens bought in millions.
WLD Token Release Schedule
Key points about the release model:
- Team and investor tokens are locked at launch.
- User-claimed tokens are not locked.
The initial circulating supply is 143 million WLD, expected to grow as new users claim Genesis Grants. The chart below outlines the unlocking schedule over 15 years, after which governance determines further releases based on user growth.
Community tokens unlock via four smart contracts, with daily linear releases over set periods. User and operator tokens have no lockup.
- TFH Investor Tokens: Locked for 12 months after warrant exercise, then linearly unlocked over 24 months.
- Initial Team Tokens: Locked for 12 months post-launch, then linearly unlocked over 24 months.
- TFH Reserve Tokens: Locked at least as long as investor/team tokens, depending on allocation timing.
👉 Explore token release strategies
WLD Utility and Distribution Goals
During the pre-launch phase (May 2021–July 2023), over 2 million users verified their World ID via Orbs in 30+ countries, receiving 43 million WLD. Worldcoin aims to deploy 1,500 Orbs globally to meet demand.
The Worldcoin Foundation, via subsidiary World Assets Ltd., manages the project, striving to decentralize governance and distribute most tokens to protocol participants.
WLD is designed as a utility token with governance features. Beyond "one token, one vote," World ID enables "one person, one vote," potentially combining both mechanisms for innovative governance. Post-launch, the foundation will solicit proposals on integrating World ID and WLD in governance.
Other use cases include:
- Paying for actions in World App or other wallets.
- Remittances, tipping artists, and buying/selling goods/services.
- Long-term potential as a global store of value.
Frequently Asked Questions
What is the total supply of WLD tokens?
The total supply is capped at 10 billion tokens for the first 15 years. After that, governance may vote to introduce a maximum annual inflation rate of 1.5%.
How are WLD tokens allocated?
75% is allocated to the community, 9.8% to the initial development team, 13.5% to TFH investors, and 1.7% to the TFH reserve. The foundation manages community distributions.
Are there lockups for team and investor tokens?
Yes, tokens for the team and investors are locked for 12 months after launch, then linearly released over the following 24 months. User-claimed tokens have no lockup.
What is the purpose of the market maker loans?
Five market makers outside the U.S. received loans of 100 million WLD to ensure liquidity. After three months, they must repay or purchase tokens at a formula-based price.
What utilities does the WLD token have?
WLD can be used for governance, in-app payments, remittances, and commerce. It may also serve as a long-term value store.
How does World ID integrate with governance?
World ID enables "one person, one vote" mechanisms, which could combine with token-based voting for novel governance models. Proposals on integration are encouraged post-launch.