Wormhole introduces innovative staking feature for governance W token surges by 12
The governance token of Wormhole, known as W, has seen a notable increase of 12% following the introduction of a new staking feature. Currently, the W token is being traded at $0.7113, reflecting a 12% rise in the last 24 hours. During this period, the cryptocurrency has also recorded a trading volume of $225 million, as per CoinMarketCap data, with a market cap of $1.25 billion.
Wormhole (W) is a cross-chain messaging protocol that facilitates the transfer of assets and data across various blockchain networks. In a recent announcement on June 6, the Wormhole team unveiled the “Stake for Governance” feature for W token holders. This new feature enables W token holders to stake their tokens in order to participate in governance decisions, promoting a decentralized and community-driven management structure.
Dan Reecer, co-founder of Wormhole Foundation, shared additional insights on the significance of this launch on the same day. He highlighted that the introduction of the staking feature marks the beginning of the W staking roadmap, introducing MultiGov, the industry’s first multichain governance system.
With MultiGov, W token holders have the option to delegate their tokens to themselves or a chosen delegate, facilitating a seamless multichain experience for voting and delegating in any DAO. The collaboration with Tally and ScopeLift has allowed users to delegate and vote from any connected Layer 2 network and, soon, Solana.
Unlike protocols like Uniswap, which host governance on the Ethereum mainnet, MultiGov offers a more convenient and cost-effective solution for users across different chains, aiming to provide a truly multichain experience and chain abstraction.
For those interested in staking for governance, users can visit the Tally Governance Portal to transfer their W tokens from Solana to supported EVM chains like Ethereum, Arbitrum, Optimism, or Base. Wormhole has implemented a daily transfer limit of 100 million W tokens from Solana (SOL) to EVM chains for security purposes.
The next steps for Wormhole governance include the completion and auditing of the Solana integration into MultiGov, followed by the acceptance of proposals and the commencement of voting. Wormhole’s efforts to expand the reach of the W token are evident with its recent listing on Robinhood, a prominent cryptocurrency exchange, allowing European customers to trade the token on the platform.
Additionally, investment firm Multicoin Capital revealed in a blog post that it had co-led a $225 million funding round in Wormhole last year. Analysts at Invezz have observed a surge in the Wormhole token from $0.513 on May 14 to over $0.718, surpassing key resistance at $0.70. Despite trading above the moving averages, the token has formed a rising broadening wedge, indicating a potential reversal down to $0.60.
Despite this, a trader known as Degen_Maximum remains optimistic, seeing the potential for the W token to double in value in the short term. Wormhole’s plans to use AMD chips for scalable, light client proofs further highlight their commitment to innovation and growth in the cryptocurrency space.
