W 2.0: A Major Tokenomics Overhaul

On September 17, the Wormhole team unveiled its “W 2.0” upgrade, introducing a sweeping revamp of its tokenomics model designed to support long-term sustainability.

One of the most significant changes is the creation of the Wormhole Reserve, a pool where protocol revenues and ecosystem value will accumulate. This mechanism is expected to reduce circulating liquidity while tightening the token’s correlation with the network’s growth.

Another major shift is the introduction of a target base yield of 4% for governance participants. Unlike inflation-driven models, this yield will be funded through protocol revenue and existing token supply. Additionally, Wormhole replaced annual cliff unlocks with bi-weekly token releases starting in October, aiming to ease supply pressure and provide a more balanced distribution framework.

Trading Volumes Explode

W’s price jump was strongly supported by an extraordinary surge in trading activity. Spot market volume skyrocketed by 595% in just 24 hours, reaching $319.5 million. Futures markets followed the same trajectory, with trading volume spiking 728% to $607.9 million, while open interest rose 76% to $113.1 million.

This surge in derivatives activity signals that traders are opening new positions rather than merely closing existing ones, reinforcing bullish momentum.

Price Outlook for Wormhole (W)

Wormhole has shown impressive short-term performance, climbing from $0.09 to $0.12, marking a gain of roughly 25%. Over the past month, the token has appreciated by 40%, highlighting growing investor confidence fueled by the new tokenomics model.

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