Worldcoin’s Whitepaper Raises Concerns About Token Supply

Worldcoin's Whitepaper Raises Concerns About Token Supply

The Emergence of Worldcoin: Analysis of the Blockchain Industry

Cryptocurrency enthusiasts worldwide have been abuzz with excitement as the highly anticipated Worldcoin (WLD) launched its trading platform, creating a frenzy among investors seeking to capitalize on the artificial intelligence (AI) hype. Co-founded by OpenAI’s CEO Sam Altman, Worldcoin’s value soared from its initial price of $1.70 to a staggering high of $3.58 before settling at $2.52, making it one of the most talked-about tokens in recent times 1.

The release of Worldcoin’s whitepaper further fueled interest and shed light on the token’s tokenomics and underlying principles. According to the document, the total supply of WLD tokens is capped at 10 billion for the first 15 years, and after this period, a 1.5% inflation rate will be subject to voters’ decision 2. However, this structure has raised concerns within the industry.

Industry experts, such as Tom Dunleavy, the founder of Alethia, have expressed apprehension over the initial circulating supply of 106 million WLD tokens, valued at approximately $219 million, compared to the total supply of 10 billion tokens. Dunleavy points out that similar tokenomics have historically been vulnerable to quick sell-offs, referencing the unfavorable history of airdrops 3. This discrepancy between the tokenomics and the circulating supply raises questions about the sustainable growth of Worldcoin.

Worldcoin’s vision extends beyond the realms of AI and cryptocurrency. It aspires to become a comprehensive financial and identity network, offering an application for payments and leveraging biometric data from “shiny, metal orbs” to create unique World IDs 4. However, this innovative approach has sparked controversy and raised concerns regarding privacy and accessibility.

The whitepaper’s availability and accessibility have been central points of criticism. While the document was accessible in Colombia, it remained inaccessible in the US and UK, despite users’ ability to verify their identity in multiple regions 5. This lack of accessibility has given rise to skepticism and placed the project under further scrutiny.

The launch of Worldcoin relied on market maker loans to limit the circulating supply to 143 million tokens. Out of this supply, 43 million tokens were reserved for early adopters, while 100 million were provided as loans to non-US market makers, allowing them to buy WLD tokens instead of returning them 6. The agreement with market makers has garnered mixed reactions within the industry.

Sadettin Kerim, a digital assets product manager at Yapı Kredi, believes that the market maker loans offer an advantage to manipulate prices, granting them easy profits 7. On the other hand, Tom Dunleavy argues that the market maker loans may be speculative and lack long-term incentives, leaving them with no motivation beyond the initial three-month duration 8.

The whitepaper outlines the allocation of WLD tokens, with 75% destined for the Worldcoin community over time. The remaining tokens are distributed among the initial development team, investors, and a reserve of 170 million WLD 9. Notably, the allocation to insiders increased to 25% due to the complexities and costs involved in developing and launching the network, as mentioned in the revised whitepaper 10. Bruno Faviero, co-founder and CEO of Magna, a token distribution platform, finds the low circulating supply, mainly in loans, difficult to assess in terms of community response 11.

Despite the challenges and controversies surrounding Worldcoin, the project has successfully verified the identities of over 2 million individuals in 35 countries using biometric data 12. However, it is essential to highlight that while World ID verification is available worldwide, WLD trading is restricted in the US and other designated territories, further complicating its accessibility 13.

In conclusion, the launch of Worldcoin has captivated the cryptocurrency community with its AI-driven approach and innovative principles. However, the concerns surrounding its tokenomics, circulating supply, and accessibility have ignited a healthy debate within the industry. Only time will tell if Worldcoin can live up to its vision and establish itself as a prominent player in the blockchain industry.

Worldcoin’s impressive surge coincided with the release of its whitepaper, shedding light on the token’s tokenomics and underlying principles. According to the document, the total supply of WLD tokens is capped at 10 billion for the first 15 years of the network’s existence. After this period, voters may decide to introduce a 1.5% inflation rate.

Worldcoin aims to establish itself as a financial and identity network, offering an app for payments and utilizing biometric data from “shiny, metal orbs” to create unique World IDs. This approach has sparked controversy, raising concerns over privacy and the availability of the whitepaper.

According to a Decrypt report, concerns have been raised over the discrepancy between the total supply of 10 billion tokens and the initial circulating supply of 106 million WLD tokens, valued at around $219 million. Industry experts, such as Tom Dunleavy, the founder of Alethia, have expressed concerns, pointing out that projects with similar tokenomics have been susceptible to quick sell-offs.

“Most tokens that have a small amount of distribution or a large fully diluted valuation have shown themselves to be easy targets for quick sell-offs. The history of airdrops, in general, has not been favorable,” said Dunleavy.

The report also disclosed that the whitepaper was not accessible in the US and UK but was available in Colombia, despite the ability for users to verify their identity in multiple regions. The lack of accessibility has led to further scrutiny.

During the token’s launch, the circulating supply was limited to 143 million tokens, with 43 million of the asset reserved for early adopters and 100 million provided as loans to non-US market makers. These loans have a three-month duration and allow market makers to buy WLD tokens instead of returning them.

The agreement with market makers has received mixed reactions. Sadettin Kerim, a digital assets product manager at Yapı Kredi, believes it offers them an advantage, allowing them to manipulate prices.

“The agreement is an absolute win for market makers. If they do not face a huge market demand, they will easily dip the price and then buy it back. It’s easy money for them,” Kerim told Decrypt.

Conversely, Dunleavy considers it speculative in the VoAGI to long term, with no incentives for market makers after the three months.

The whitepaper also outlined the allocation of WLD tokens, with 75% going to the Worldcoin community over time. The rest is divided among the initial development team, investors, and a reserve of 170 million WLD. The allocation to insiders increased to 25% due to the complexities and costs of developing and launching the network, as stated in the revised whitepaper.

Additionally, Bruno Faviero, co-founder and CEO of Magna, a token distribution platform, finds the low circulating supply, mainly in loans, difficult to gauge in terms of community response.

Despite the challenges and controversies surrounding Worldcoin, the project managed to verify the identities of more than 2 million people in 35 countries using biometric data. However, it’s worth noting that while World ID verification is available worldwide, WLD trading is restricted in the US and other territories.


  1. The highly anticipated crypto token, Worldcoin (WLD), co-founded by OpenAI’s CEO Sam Altman, made a splash on its first day of trading as investors rushed to be part of the artificial intelligence (AI) hype. WLD’s value skyrocketed from its initial price of $1.70 to a high of $3.58 before settling at $2.52, according to CoinMarketCap data. Trading volume reached nearly $350 million on various exchanges, including Binance, Bybit, and OKX.↩︎

  2. The highly anticipated crypto token, Worldcoin (WLD), co-founded by OpenAI’s CEO Sam Altman, made a splash on its first day of trading as investors rushed to be part of the artificial intelligence (AI) hype. WLD’s value skyrocketed from its initial price of $1.70 to a high of $3.58 before settling at $2.52, according to CoinMarketCap data. Trading volume reached nearly $350 million on various exchanges, including Binance, Bybit, and OKX.↩︎

  3. The highly anticipated crypto token, Worldcoin (WLD), co-founded by OpenAI’s CEO Sam Altman, made a splash on its first day of trading as investors rushed to be part of the artificial intelligence (AI) hype. WLD’s value skyrocketed from its initial price of $1.70 to a high of $3.58 before settling at $2.52, according to CoinMarketCap data. Trading volume reached nearly $350 million on various exchanges, including Binance, Bybit, and OKX.↩︎

  4. The highly anticipated crypto token, Worldcoin (WLD), co-founded by OpenAI’s CEO Sam Altman, made a splash on its first day of trading as investors rushed to be part of the artificial intelligence (AI) hype. WLD’s value skyrocketed from its initial price of $1.70 to a high of $3.58 before settling at $2.52, according to CoinMarketCap data. Trading volume reached nearly $350 million on various exchanges, including Binance, Bybit, and OKX.↩︎

  5. The highly anticipated crypto token, Worldcoin (WLD), co-founded by OpenAI’s CEO Sam Altman, made a splash on its first day of trading as investors rushed to be part of the artificial intelligence (AI) hype. WLD’s value skyrocketed from its initial price of $1.70 to a high of $3.58 before settling at $2.52, according to CoinMarketCap data. Trading volume reached nearly $350 million on various exchanges, including Binance, Bybit, and OKX.↩︎

  6. The highly anticipated crypto token, Worldcoin (WLD), co-founded by OpenAI’s CEO Sam Altman, made a splash on its first day of trading as investors rushed to be part of the artificial intelligence (AI) hype. WLD’s value skyrocketed from its initial price of $1.70 to a high of $3.58 before settling at $2.52, according to CoinMarketCap data. Trading volume reached nearly $350 million on various exchanges, including Binance, Bybit, and OKX.↩︎

  7. The highly anticipated crypto token, Worldcoin (WLD), co-founded by OpenAI’s CEO Sam Altman, made a splash on its first day of trading as investors rushed to be part of the artificial intelligence (AI) hype. WLD’s value skyrocketed from its initial price of $1.70 to a high of $3.58 before settling at $2.52, according to CoinMarketCap data. Trading volume reached nearly $350 million on various exchanges, including Binance, Bybit, and OKX.↩︎

  8. The highly anticipated crypto token, Worldcoin (WLD), co-founded by OpenAI’s CEO Sam Altman, made a splash on its first day of trading as investors rushed to be part of the artificial intelligence (AI) hype. WLD’s value skyrocketed from its initial price of $1.70 to a high of $3.58 before settling at $2.52, according to CoinMarketCap data. Trading volume reached nearly $350 million on various exchanges, including Binance, Bybit, and OKX.↩︎

  9. The highly anticipated crypto token, Worldcoin (WLD), co-founded by OpenAI’s CEO Sam Altman, made a splash on its first day of trading as investors rushed to be part of the artificial intelligence (AI) hype. WLD’s value skyrocketed from its initial price of $1.70 to a high of $3.58 before settling at $2.52, according to CoinMarketCap data. Trading volume reached nearly $350 million on various exchanges, including Binance, Bybit, and OKX.↩︎

  10. The highly anticipated crypto token, Worldcoin (WLD), co-founded by OpenAI’s CEO Sam Altman, made a splash on its first day of trading as investors rushed to be part of the artificial intelligence (AI) hype. WLD’s value skyrocketed from its initial price of $1.70 to a high of $3.58 before settling at $2.52, according to CoinMarketCap data. Trading volume reached nearly $350 million on various exchanges, including Binance, Bybit, and OKX.↩︎

  11. The highly anticipated crypto token, Worldcoin (WLD), co-founded by OpenAI’s CEO Sam Altman, made a splash on its first day of trading as investors rushed to be part of the artificial intelligence (AI) hype. WLD’s value skyrocketed from its initial price of $1.70 to a high of $3.58 before settling at $2.52, according to CoinMarketCap data. Trading volume reached nearly $350 million on various exchanges, including Binance, Bybit, and OKX.↩︎

  12. The highly anticipated crypto token, Worldcoin (WLD), co-founded by OpenAI’s CEO Sam Altman, made a splash on its first day of trading as investors rushed to be part of the artificial intelligence (AI) hype. WLD’s value skyrocketed from its initial price of $1.70 to a high of $3.58 before settling at $2.52, according to CoinMarketCap data. Trading volume reached nearly $350 million on various exchanges, including Binance, Bybit, and OKX.↩︎

  13. The highly anticipated crypto token, Worldcoin (WLD), co-founded by OpenAI’s CEO Sam Altman, made a splash on its first day of trading as investors rushed to be part of the artificial intelligence (AI) hype. WLD’s value skyrocketed from its initial price of $1.70 to a high of $3.58 before settling at $2.52, according to CoinMarketCap data. Trading volume reached nearly $350 million on various exchanges, including Binance, Bybit, and OKX.↩︎

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