Wormhole introduces innovative governance staking feature W token surges by 12
The governance token of Wormhole, known as W, has seen a significant increase of 12% following the introduction of a new staking feature.
As of the current moment, the W token is being traded at $0.7113, marking a 12% rise in the last 24 hours. During this same timeframe, the cryptocurrency also experienced a trading volume of $225 million, according to data from CoinMarketCap. Its market capitalization is currently at $1.25 billion.
Wormhole (W) is a messaging protocol that operates across different blockchain networks, facilitating the transfer of assets and data.
On June 6, the Wormhole team announced the launch of the “Stake for Governance” feature for W token holders. This new feature allows token holders to stake their W tokens in order to participate in governance decisions, promoting a more decentralized and community-driven management structure.
Dan Reecer, co-founder of Wormhole Foundation, shared additional details about the launch on June 6 as well. He explained that the introduction of the staking feature marks the initial step in the W staking roadmap, introducing the industry’s first multichain governance system, MultiGov.
W token holders now have the ability to delegate their tokens to themselves or a chosen delegate, ensuring a seamless multichain experience for voting and delegating within any DAO.
MultiGov, developed in collaboration with Tally and ScopeLift, enables users to delegate and vote from any connected Layer 2 network and soon on Solana.
Unlike other protocols like Uniswap, which conducts governance on the Ethereum mainnet, MultiGov offers a more convenient and cost-effective solution for users on various chains, aiming to provide a truly multichain experience and chain abstraction.
Users interested in staking for governance can visit the Tally Governance Portal, where they can 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 put in place a daily transfer limit of 100 million W tokens from Solana (SOL) to EVM chains to enhance security.
Next steps for Wormhole governance involve finalizing and auditing the Solana integration 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 major cryptocurrency exchange, making the token available to trade for European customers on the platform. In addition, 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.
Invezz analysts have observed a surge in the Wormhole token’s value 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 and potentially risking a reversal down to $0.60.
Nevertheless, a trader known as Degen_Maximum remains optimistic about the W token’s potential to double in value in the near future, adding a positive outlook to its recent performance.
