Wormhole’s governance token, W, has recently experienced a significant surge of 12% following the introduction of a new staking feature. The W token is currently trading at $0.7113, up 12% in the last 24 hours, with a trading volume of $225 million and a market cap of $1.25 billion. Wormhole is a cross-chain messaging protocol that allows for 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 functionality allows W token holders to stake their tokens to participate in governance decisions, promoting a more decentralized and community-driven management structure. Dan Reecer, co-founder of Wormhole Foundation, explained that the launch of the staking feature marks the first step in the W staking roadmap, introducing MultiGov, the industry’s first multichain governance system.
MultiGov, developed in collaboration with Tally and ScopeLift, allows users to delegate and vote from any connected Layer 2 network and, soon, Solana. Unlike other protocols that host governance on the Ethereum mainnet, MultiGov offers a more convenient and cost-effective solution across different chains, providing a truly multichain experience and chain abstraction. Users can delegate their tokens to themselves or chosen delegates for seamless voting and delegating in any decentralized autonomous organization (DAO).
For users interested in staking for governance, they can visit the Tally Governance Portal to transfer their W tokens from Solana to a supported EVM chain, such as Ethereum, Arbitrum, Optimism, or Base. Wormhole has implemented a daily transfer limit of 100 million W tokens from Solana to EVM chains for security purposes. The next steps for Wormhole governance include completing and auditing the Solana integration into MultiGov, followed by the acceptance of proposals and the beginning of voting.
Wormhole has recently made efforts to expand the reach of the W token, including its listing on Robinhood, a major cryptocurrency exchange where European customers can now trade the token. Additionally, investment firm Multicoin Capital co-led a $225 million funding round in Wormhole last year, indicating confidence in the project’s growth potential. Analysts have observed a surge in the Wormhole token’s price from $0.513 on May 14 to over $0.718, surpassing key resistance at $0.70 despite forming a bearish rising broadening wedge.
While analysts warn of a potential reversal down to $0.60, traders like Degen_Maximum remain optimistic about W token’s short-term growth potential, with a prediction of a potential 2x increase in value on the horizon. Overall, the introduction of the Stake for Governance feature and the development of MultiGov demonstrate Wormhole’s commitment to promoting decentralized governance and a multichain experience for W token holders.
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