New governance staking feature revealed by Wormhole sees W token surge by 12
Wormhole’s governance token, W, has seen a significant increase of 12% following the introduction of a new staking feature. Currently, the W token is trading at $0.7113, marking a 12% rise in the last 24 hours. During this time period, the crypto asset also saw a trading volume of $225 million, as reported by CoinMarketCap, with a market cap of $1.25 billion.
Wormhole (W) is a cross-chain messaging protocol that enables the transfer of assets and data across different blockchain networks.
On June 6, the Wormhole team announced the launch of the “Stake for Governance” feature for W token holders. This new feature allows W token holders to stake their tokens for participation in governance decisions, promoting a decentralized and community-driven management structure.
Dan Reecer, co-founder of Wormhole Foundation, shared additional details about the significance of this launch. He explained that the staking feature is the first step in the W staking roadmap, introducing the industry’s first multichain governance system, MultiGov.
W token holders now have the option to delegate their tokens to themselves or to a chosen delegate, enabling a seamless multichain experience for voting and delegating in any DAO. MultiGov, developed in partnership with Tally and ScopeLift, allows users to delegate and vote from any connected Layer 2 network and, soon, Solana.
Unlike other protocols like Uniswap, which conduct governance on the Ethereum mainnet, MultiGov offers a more convenient and cost-effective solution for users across various chains, aiming to provide a truly multichain experience and chain abstraction.
To stake for governance, users can visit the Tally Governance Portal, where they can transfer their W tokens from Solana to supported EVM chains such as Ethereum, Arbitrum, Optimism, or Base. Once transferred, users can select a delegate and stake their W tokens for governance.
Wormhole has also set 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 finalizing and auditing 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 W token. Additionally, investment firm Multicoin Capital disclosed in an April 3 blog post that it co-led a $225 million funding round in Wormhole last year.
Analysts at Invezz noted that the Wormhole token has surged from $0.513 on May 14 to over $0.718, surpassing the key resistance at $0.70. Despite trading above the 50-period and 25-period moving averages, it has formed a rising broadening wedge, indicating a bearish pattern and potential reversal down to $0.60.
On a more optimistic note, trader Degen_Maximum sees the potential for the W token to double in value in the short term, highlighting a positive outlook on its recent performance.
