WalletConnect Staking APY Vote: 4-Week Rate Rises To 5%

Holders of the WalletConnect token are voting on a reset of the WalletConnect staking APY, and early results favour the change. Proposal P4 swaps the old linear reward formula for a power-law curve and adds a second measure called RewardWeight. On Snapshot it has drawn 295 votes. About 69% of the voting power is in favour and about 31% is against.

What proposal P4 changes

The proposal was posted by pedrogomes.eth, who appears with an admin tag on the WalletConnect Network space. It starts from a complaint about how the WalletConnect staking APY works today. Someone who locks WCT for four weeks earns well under 1% a year, while the longest lock pays about 26 times more. The linear formula also runs down to zero once enough people stake.

Two changes are on the table. First, a power-law curve would let yields rise when few people stake and ease off as more join. Second, RewardWeight would decide rewards only, and StakeWeight would keep deciding locking and votes. According to the text, nobody's existing balance, history or governance rights would be rewritten.

The WalletConnect staking APY table, before and after

The proposal includes a table of indicative yields, and it is worth a close look. The shortest lock would jump from under 1% to 5%. At the other end, the 104-week lock would climb from about 20% to about 24.5%. All the lengths in between gain a similar four points or so. The ladder gets much flatter, with the top rate under five times the bottom instead of 26 times.

Reward weight tilts the same way. In the proposal's example, 1,000 WCT locked for four weeks would carry about 101 units of reward weight, up from around 19 of stake weight. The extra shrinks as locks lengthen and disappears at the 104-week end. Every rate is labelled indicative, so the final values would need to be exact on-chain, and the authors say the executable proposal must carry them.

Timeline and caveats

The WalletConnect staking APY vote began on October 12 and runs to October 19. The space sets no quorum for it.

The P4 vote on Snapshot, with the live result and the timeline. Source: Snapshot.

Passing would not flip a switch, because the proposal lists more work first. That means contract testing, a migration check and an outside audit, then a frontend update and a final payload for the community to check again. When it does go live, it would start at a future Thursday reward period, and rewards already settled stay as they are.

One more caution applies to the comparison table. It sets the old and new systems at the same illustrative network total, though total stake weight and total reward weight are different measures. Read it as the shape of the new curve and not as a forecast.

WCT/USDT four-hour chart on TradingView. Chart by Faith Njeri.

On the market side, WCT trades near 4 cents on Binance after a 4% fall over 24 hours. The proposal never mentions price, so this article does not link the two, and none of it is investment advice.