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Wormhole Announces W 2.0 Tokenomics Upgrade to Bolster Protocol Longevity

New framework introduces a strategic reserve, a 4% base yield for staking, and an optimized token unlock schedule to align stakeholders with long-term growth.

September 17, 2025

Wormhole Announces W 2.0 Tokenomics Upgrade to Bolster Protocol Longevity

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Quick Take
  • Wormhole introduces W 2.0 Tokenomics with a focus on long-term sustainability.
  • Key features include the Wormhole Reserve, a 4% base staking yield, and an optimized token unlock schedule.
  • The changes are designed to better align incentives for all participants in the Wormhole ecosystem.

Wormhole has unveiled its W 2.0 Tokenomics, a revised framework designed to enhance the utility and sustainability of its native W token. The upgrade introduces three key features: the Wormhole Reserve, a 4% base yield on staked W, and an optimized token unlock schedule.

The Wormhole Reserve will act as a strategic fund of W tokens, leveraging both on-chain and off-chain protocol value to support the long-term health of the ecosystem. This initiative demonstrates a commitment from Wormhole contributors to the protocol's longevity and its token holders.

In a move to redefine yield, W 2.0 will offer a 4% base reward for users who stake their W tokens for governance. This feature aims to provide a predictable incentive for stakers, encouraging participation in the network's growth and security. The yield is noted as variable and not guaranteed.

Finally, the token distribution schedule, originally established in 2021, is being updated to align with current industry best practices. The "Unlock Optimization" will move away from the previous annual cliff unlock structure, which is now seen as outdated. This new framework is intended to better align every staker, validator, developer, and user with Wormhole’s long-term success.

Wormhole has unveiled its W 2.0 Tokenomics, a revised framework designed to enhance the utility and sustainability of its native W token. The upgrade introduces three key features: the Wormhole Reserve, a 4% base yield on staked W, and an optimized token unlock schedule.

The Wormhole Reserve will act as a strategic fund of W tokens, leveraging both on-chain and off-chain protocol value to support the long-term health of the ecosystem. This initiative demonstrates a commitment from Wormhole contributors to the protocol's longevity and its token holders.

In a move to redefine yield, W 2.0 will offer a 4% base reward for users who stake their W tokens for governance. This feature aims to provide a predictable incentive for stakers, encouraging participation in the network's growth and security. The yield is noted as variable and not guaranteed.

Finally, the token distribution schedule, originally established in 2021, is being updated to align with current industry best practices. The "Unlock Optimization" will move away from the previous annual cliff unlock structure, which is now seen as outdated. This new framework is intended to better align every staker, validator, developer, and user with Wormhole’s long-term success.

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