LAST UPDATE 27 March 2025
The crypto-asset referred to in this white paper is not covered by the deposit guarantee schemes under Directive 2014/49/EU of the European Parliament and of the Council.
This summary should be read as an introduction to the crypto-asset white paper. The prospective holder should base any decision to purchase this crypto-asset on the content of the crypto-asset white paper as a whole and not on the summary alone. The offer to the public of this crypto-asset does not constitute an offer or solicitation to purchase financial instruments and any such offer or solicitation can be made only by means of a prospectus or other offer documents pursuant to the applicable national law.
This crypto-asset white paper does not constitute a prospectus as referred to in Regulation (EU) 2017/1129 of the European Parliament and of the Council (36) or any other offer document pursuant to European Union or national law.
The WCT token powers the onchain UX ecosystem, acting as both a reward and governance mechanism within the ecosystem. The WCT token has four primary functions within the WalletConnect Network: Fees, Rewards, Staking, and Governance. WCT holders can vote on proposals and changes, giving the community control over the Network’s development through decentralized governance. Participants can stake WCT tokens to earn rewards and participate in governance. At launch, the WCT token is non-transferable for all holders. This non-transferability period mitigates potential risks associated with premature token liquidity. It is expected that the WalletConnect Foundation will facilitate the token holder community to propose and vote on when transferability will be enabled. Initially, applications and SDKs will not be charged fees by the Network for using the relay services. However, when the ecosystem reaches an appropriate stage of maturity, the introduction of fees could be proposed by the community. WCT tokens are distributed as rewards to incentivize participation and contribute to Network security and efficiency.
The WCT token qualifies as a crypto-asset under Article 3(1)(5) of the Markets in Crypto-Assets Regulation (MiCA), as it is a digital representation of value issued and transferred via distributed ledger technology (DLT). The token is designed to facilitate participation within the WalletConnect Network, providing users with governance rights, staking capabilities, and rewards, rather than representing any form of traditional financial instrument.
Exclusion from Asset-Referenced Tokens (ARTs)
Under Article 3(1)(6) of MiCA, an Asset-Referenced Token (ART) is defined as a crypto-asset that aims to maintain stability by referencing one or more fiat currencies, commodities, or other assets. The WCT token does not meet this definition, as it does not derive its value from any external reference point. Specifically: