WalletConnect Advances Decentralization Efforts with Foundation and WCT Token Launch

WalletConnect, a leading on-chain UX ecosystem, has advanced its decentralization strategy over the past year with the establishment of the WalletConnect Foundation and the introduction of its native WCT token. The token now serves multiple functions within the ecosystem including fees, rewards, staking, and governance, supporting a network that serves millions of users across the crypto space.

Pedro Gomes, founder of WalletConnect, explained the timing of the WCT launch was based on what he termed "token-market fit." With multiple SDKs building atop the network, Gomes identified an opportunity for stakeholders to "find a common ground where we’re incentivized to build together." The token architecture also encourages node operators to align with the network’s mission while incentivizing cryptocurrency wallets that have brought approximately 40 million users to the ecosystem.

The decentralization initiative extends beyond token economics. "We’re seeing them participating more actively through staking and through governance, having discussions and feeling empowered to actually be an owner as well," Gomes noted regarding community engagement following WCT’s season one airdrop.

The creation of the WalletConnect Foundation emerged in response to rapid ecosystem growth. As the network expanded to include not just WalletConnect’s proprietary SDK but also third-party SDKs, Gomes recognized an opportunity to "remove the single point of failure, but also to bring on all of these ecosystem partners to actually collaborate with us."

Future Developments

Looking ahead, Gomes indicated that the network will pursue "multiple angles through decentralization to really find a way that we can be as resistant and as global as possible."

These efforts will be accompanied by refinements to the WCT token economics. "We have kicked off what I think is a very healthy token ecosystem for WCT," Gomes stated, while noting plans to enhance how rewards are distributed to node operators, wallets, and SDKs.

The introduction of network fees represents another significant development. According to Gomes, this will ensure that "all of these rewards are revenue driven," potentially resulting in "not only a decentralized network, but we might even have a profitable decentralized network."

Improving Cryptocurrency User Experience

To date, the WalletConnect ecosystem has facilitated over 255 million "seamless, secure connections" for more than 45 million users globally, connecting 600 wallets to 54,000 applications.

As part of its UX improvement initiatives, the organization launched WalletConnect Certified in 2024, a certification program that recognizes projects meeting "the highest standards in UX, compliance, security, and feature integration."

"WalletConnect was born out of standards," Gomes told Decrypt, explaining that the certification helps align wallet developers around criteria for "good user experience, good security and meeting interoperability standards." While acknowledging developer freedom, he emphasized the need for "a baseline where we define a good wallet, and then you build from there."

For mainstream crypto adoption, Gomes believes wallets must focus on minimizing user interactions. "The number one complaint that people have is that there’s just too many steps," he noted, adding that "if there is a click somewhere, it needs to be removed."

To address this challenge, WalletConnect is developing Smart Sessions, a feature that will enable users to "connect and forget." This functionality will allow crypto wallets to connect to applications with a single click, without requiring subsequent transaction approvals.

"Smart Sessions change not just how wallets work, but how we interact with dapps," Gomes explained, describing the potential impact as "quite pivotal for the user experience." His vision includes wallets maintaining a "persistent connection that protects you from any malicious activity, and it just happens magically in the background."

Crypto enthusiasts interested in the WalletConnect ecosystem can participate in the WalletConnect Community Contest on MYRIAD from March 13 – May 2. The contest invites users to predict trends in the ecosystem, including connection metrics, wallet growth, and application integration rates, with 150,000 WCT tokens available as rewards.

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