Wormhole’s governance token, W, has surged by 12% following the introduction of a new staking feature, reaching a trading price of $0.7113. In the past 24 hours, the token also saw a trading volume of $225 million and a market capitalization of $1.25 billion, according to CoinMarketCap.
Wormhole (W) is a cross-chain messaging protocol that facilitates the transfer of assets and data across various blockchain networks.
On June 6, the Wormhole team announced the launch of the “Stake for Governance” feature for W token holders via an X post. This new functionality allows W token holders to stake their tokens and participate in governance decisions, promoting a more decentralized and community-driven management structure.
Dan Reecer, co-founder of Wormhole Foundation, elaborated on the significance of this launch in a separate X post. He noted that this staking feature marks the first step in the W staking roadmap, introducing the industry’s first multichain governance system, MultiGov.
W token holders can now delegate their tokens to themselves or a chosen delegate, enabling a seamless multichain experience for voting and delegating in any DAO.
Reecer highlighted that MultiGov, developed in collaboration with Tally and ScopeLift, allows users to delegate and vote from any connected Layer 2 network and, soon, Solana. Tally is a governance platform that assists DAOs in managing proposals and voting, while ScopeLift focuses on building tools for decentralized governance.
Unlike other protocols like Uniswap, which hosts its governance on the Ethereum mainnet, MultiGov offers a more convenient and cost-effective solution for users across different chains, aiming to provide a truly multichain experience and chain abstraction.
For those looking to stake for governance, users can visit the Tally Governance Portal to transfer their W tokens from Solana to a supported EVM chain, such as Ethereum, Arbitrum, Optimism, or Base. Once transferred, users can choose a delegate and stake their W tokens for governance.
Wormhole has also implemented a daily transfer limit of 100 million W tokens from Solana to EVM chains to ensure security. The next steps for Wormhole governance include completing and auditing the Solana integration into MultiGov, after which proposal acceptance and voting will commence.
Wormhole’s efforts to expand the reach of the W token are further evidenced by its recent listing on Robinhood, a major cryptocurrency exchange. The W token is now available for trading with European customers on the platform. Additionally, investment firm Multicoin Capital revealed in an April 3 blog post that it had co-led a $225 million funding round in Wormhole last year.
According to analysts at Invezz, the W token has risen from $0.513 on May 14 to over $0.718, breaking past key resistance at $0.70. Despite trading above the 50-period and 25-period moving averages, it has formed a rising broadening wedge, a bearish pattern, indicating a potential reversal down to $0.60.
Meanwhile, a trader known as Degen_Maximum sees the potential for the W token to double in value in the short term, adding an optimistic twist to its recent performance.
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