Wormhole introduces innovative governance staking feature leading to a 12 increase in W token value
Wormhole’s native token, W, has seen a significant increase of 12% following the launch of a new staking feature.
As of now, the W token is trading at $0.7113, marking a 12% surge over the past 24 hours. During this period, the cryptocurrency also recorded a trading volume of $225 million, as reported by CoinMarketCap. Its market cap currently stands at $1.25 billion.
Wormhole (W) is a cross-chain messaging protocol designed to facilitate the seamless transfer of assets and data across various blockchain networks.
In a recent announcement on June 6, the Wormhole team introduced the “Stake for Governance” feature for W token holders. This new feature enables W token holders to stake their tokens for participation in governance decisions, thereby promoting a more decentralized and community-driven management system.
Dan Reecer, co-founder of Wormhole Foundation, shared additional insights on this launch via X, highlighting that the staking feature is the first step in the W staking roadmap, introducing the industry’s first multi-chain governance system, MultiGov.
W token holders now have the option to delegate their tokens to themselves or a chosen representative, enabling a smooth multi-chain voting and delegating experience within any DAO.
Reecer also mentioned that MultiGov, developed in collaboration with Tally and ScopeLift, allows users to delegate and vote from any connected Layer 2 network and will soon extend to Solana.
Unlike other platforms like Uniswap, which conduct governance on the Ethereum mainnet, MultiGov offers a more convenient and cost-effective solution for users across different chains, aiming to provide a truly multi-chain experience and chain abstraction.
For users interested in staking for governance, they can visit the Tally Governance Portal to transfer their W tokens from Solana to supported EVM chains like Ethereum, Arbitrum, Optimism, or Base. Once transferred, users can select a delegate and stake their W tokens for governance.
Wormhole has also enforced a daily transfer limit of 100 million W tokens from Solana (SOL) to EVM chains to ensure security.
Future plans for Wormhole governance include finalizing and auditing the integration of Solana into MultiGov, followed by proposal acceptance and the commencement of voting.
Wormhole’s efforts to expand the reach of the W token are evident in its recent listing on Robinhood, a prominent cryptocurrency exchange, offering European customers the opportunity to trade the W token. Additionally, investment firm Multicoin Capital disclosed in an April 3 blog post that it had co-led a $225 million funding round in Wormhole last year.
According to analysts at Invezz, the Wormhole token has surged from $0.513 on May 14 to over $0.718, surpassing a crucial resistance level at $0.70. Despite trading above the 50-period and 25-period moving averages, the token has formed a rising broadening wedge, indicating a bearish pattern that could lead to a reversal down to $0.60.
Meanwhile, a trader known as Degen_Maximum remains optimistic about the potential for the W token to double in value in the short term, offering a positive outlook on its recent performance.
