Worldcoin introduces World Chain on Ethereum Layer-2

The eye-scanning project, Worldcoin (WLD), led by Sam Altam, shared news about an exciting development. They’re launching a layer-2 network they’ve named World Chain. This brand-new open-source network, which is expected to go live by this summer, will be built on the security foundations of Ethereum through what’s known as the OP stack.

Introducing World Chain, a new blockchain designed for humans ⚪️ pic.twitter.com/qNb7S3vqut

— Worldcoin (@worldcoin) April 17, 2024

It’s still unclear whether WLD will serve as a gas token. However, based on initial reactions, the news appears to have been positively received.

Ethereum scalability solution

Sam Altman and his Worldcoin project are joining the layer-2 network to help Ethereum tackle its notable scalability issues. The team at Tools for Humanity recently announced the launch of their own network, World Chain, in an official statement.

Reports indicate that the chain will leverage Ethereum’s in-built security measures. It will be built on the OP stack operating framework employed in creating Base last year.

Worldcoin plans to launch its mainnet this summer. Their existing user base of 5 million, who have already completed the iris recognition system, is anticipated to play a crucial role in governance matters.

World Chain is designed to be an open-source and user-friendly framework aiming to reduce the impact of bots online. It prioritizes real, verified users when building blocks while allowing bots basic access. This strategy aims to decrease the congestion caused by cryptographic network bots.

With the launch of the new chain, web3 developers will gain another resource for building apps. These apps, focusing on practical, real-world use, will help to forge a stronger connection between the on-chain and off-chain worlds.

WLD’s potential amidst market dynamics

The Worldcoin team hasn’t firmly promised that WLD will become the official currency for transaction fees on their new layer-2 World Chain network, but it’s a strong possibility.

Despite the announcement, WLD’s value didn’t skyrocket. However, it managed to keep its losses to a minimum when the entire market, particularly the AI sector, saw a significant downturn.

WLD-USDT, even with the current downward trend in the market, has successfully kept its price above $4.5. This sustains the possibility of a turnaround in the near future. However, the recent intense market fluctuations have dampened the bullish enthusiasm we saw in early 2024, which might prompt a further price drop.

It’s possible that the value of WLD could rise from its current support level, potentially reaching back up to $6, mainly if Bitcoin and Ethereum show signs of revival. Currently, the attention is on the trading range extremes between $4 and $5.5.

The addition of the gas token to the World Chain may provide extra functionality that could boost WLD’s worth and raise the need for Worldcoin-related services. Right now, the main issue for WLD isn’t its usefulness. Instead, the problem lies in the massive influx of new supply set to hit the market, coupled with the anticipated inflation in the next few years.

Dune Analytics data shows that only about 2% of all WLD tokens are in circulation. The rest are yet to be released and shared among the community, investors, the Worldcoin team, and funds earmarked for development within the organization.

Starting in August this year, early investors will begin to unlock their shares, likely selling some for their initial profits. By 2026, 50% of all WLD tokens will be unlocked. With many holders selling off their tokens, this could lead to a drop in the cryptocurrency’s value.

It’s interesting to observe that the number of new coins introduced has significantly increased since mid-December 2023. In just four months, the proportion of circulating tokens almost doubled. Moreover, data from Dune highlights that the eight leading holders of WLD possess a whopping 90% of the total coin supply.