Wormhole’s governance token, W, has surged 12% following the introduction of a new staking feature.
At the time of writing, the W token was trading at $0.7113, up 12% in the last 24 hours. During the same period, the crypto asset saw a trading volume of $225 million, according to CoinMarketCap. Its market cap was $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 via X 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 the Wormhole Foundation, also shared details on X about the significance of this launch. He explained that this staking feature is the first step in the W staking roadmap, introducing the industry’s first multichain governance system, MultiGov.
W token holders can now delegate their tokens either to themselves or to a chosen delegate, allowing for a seamless multichain experience in voting and delegation within any DAO.
Reecer also noted that MultiGov, developed in collaboration with Tally and ScopeLift, enables users to delegate and vote from any connected Layer 2 network and, soon, Solana.
Tally is a governance platform that assists DAOs in managing their proposals and voting. ScopeLift is a development team focused on building tools for decentralized governance.
Unlike other protocols, such as Uniswap, which host their governance on the Ethereum mainnet, MultiGov offers a more convenient and cost-effective solution for users across different chains. This innovation aims to provide a truly multichain experience and chain abstraction.
Summary Review: Wormhole’s introduction of the “Stake for Governance” feature has not only driven up the value of the W token but also marks a significant step towards more decentralized and efficient governance across multiple blockchain networks. This development highlights the potential for a more integrated and community-driven approach to managing blockchain ecosystems.
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