Worldcoin, which uses iris biometrics to create a unique human identity database, said Sunday it is changing the distribution of its circulating WLD token supply and its market maker loan agreements. The project, launched in July, will decrease the loan amounts to market makers and will start rewarding operators with WLD instead of USDC.
Worldcoin Updates Token Supply and Loan Agreements
WLD’s circulating supply is now close to 134 million tokens, an increase from the 100 million at its debut. In an update published on Sunday, the company said this jump is attributed to more than 800,000 new and current users who claimed about 34 million tokens through free grants. To boost liquidity, Worldcoin provided 100 million WLD in loans to five market makers, with those loans set to end on October 24, 2023.
The company backed by Openai CEO Sam Altman has extended these loans to December 15 but has cut the overall loan amount to 75 million WLD. On October 24, market makers can return as many as 25 million tokens or buy them at a predetermined price, leading to a decrease in the circulating supply. Rewards for operators of Worldcoin’s Orb iris scanners will switch from USDC to WLD in the coming month.
“The WLD token was launched with a relatively low circulating supply of just above 100M WLD,” Worldcoin said. “This was due to the goal of creating a network of as many human beings as possible. To achieve this, the majority of the WLD token supply will be given to new and existing users in the form of user grants over the years to come.”
Worldcoin asserts that its iris biometric database will deter fraud and enhance access to key services like banking and voting. However, privacy proponents and governments have expressed worries over its centralized nature and data handling methods. Data watchdogs from France, Kenya, and other nations have raised concerns.
Even with its quick expansion, only 1.34% of Worldcoin’s overall token supply of 10 billion is currently in circulation. The initiative intends to keep awarding grants to expand its user community. These recent adjustments are intended to lessen the sway of market makers and to better reward network participants.
Bitcoin.com News has reported on several occasions that most of the WLD supply is currently dominated by Worldcoin and market makers. 750,157 unique addresses hold WLD today, and the top 100 holders command 92.74% of the maximum supply.
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