Wormhole’s native token, W, has seen a remarkable surge of 12% following the introduction of a new staking feature.
As of the latest update, the W token was valued at $0.7113, representing a 12% increase over the past 24 hours. During this period, the cryptocurrency also recorded a trading volume of $225 million, according to data from CoinMarketCap. Its market cap reached $1.25 billion.
Wormhole (W) serves as a cross-chain messaging protocol that enables the seamless transfer of assets and data across various blockchain networks.
In a recent announcement on June 6, the Wormhole team unveiled the “Stake for Governance” feature for W token holders. This new feature allows W token holders to stake their tokens to actively participate in governance decisions, fostering a more decentralized and community-driven management approach.
Dan Reecer, co-founder of the Wormhole Foundation, shared additional insights on this launch through an X post on the same day. He emphasized that the introduction of the staking feature marks the initial phase in the W staking roadmap, introducing the industry’s first multichain governance system, MultiGov.
Token holders now have the option to delegate their tokens to themselves or a chosen representative, providing a seamless multichain voting and delegating experience within any DAO.
Reecer also highlighted that MultiGov, developed in partnership with Tally and ScopeLift, empowers users to delegate and vote from any connected Layer 2 network, and soon, on Solana.
Unlike platforms like Uniswap that conduct governance on the Ethereum mainnet, MultiGov offers a more user-friendly and cost-effective solution for individuals operating on diverse chains. This innovative approach aims to deliver a truly multichain experience and chain abstraction.
For those interested in staking for governance, users 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.
To ensure security, Wormhole has imposed a daily transfer limit of 100 million W tokens from Solana to EVM chains.
Future plans for Wormhole governance involve finalizing and auditing the integration of Solana into MultiGov, paving the way for proposal acceptance and voting commencement.
Wormhole’s dedication to expanding the W token’s reach is evident through its recent listing on Robinhood, a prominent cryptocurrency exchange. The W token is now accessible for trading by European customers on the platform. Additionally, investment firm Multicoin Capital disclosed in an April 3 blog post that it co-led a $225 million funding round for Wormhole last year.
Invezz analysts have observed a significant surge in the Wormhole token’s value, climbing from $0.513 on May 14 to over $0.718, surpassing key resistance 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 may lead to a potential reversal down to $0.60.
Nevertheless, a trader known as Degen_Maximum remains optimistic about the W token, foreseeing a potential doubling in value in the near future, adding a positive outlook to its recent performance.
For more information, Wormhole plans to utilize AMD chips for scalable, light client proofs.