What is Worldcoin (WLD)?

Worldcoin is an iris biometric cryptocurrency project developed by Tools for Humanity, a San Francisco- and Berlin-based organization. Established in 2019 by Sam Altman, the CEO of OpenAI, along with Max Novendstern and Alex Blania, the project enjoys the support of venture capital firm Andreessen Horowitz.

Functioning as an open-source protocol, Worldcoin aims to provide universal access to the global economy. The project is designed to operate in a decentralized manner, where the supervision and decision-making processes ultimately lie within its community of users.

Crucially, Worldcoin, facilitated by World ID's distinctive digital identity system, assumes a significant role in showcasing human presence in an online landscape increasingly dominated by advanced artificial intelligence.

History of Worldcoin (WLD)

History

• Founded in 2019 by Sam Altman, the CEO of OpenAI, along with Max Novendstern and Alex Blania, Worldcoin has seen notable developments in its funding and expansion.
• In October 2021, the project successfully secured an initial investment of $25 million. Within six months, an additional $100 million was raised, propelling the token's value to an impressive $3 billion.
• In May 2023, an additional funding round of $115 million was announced. These funds are earmarked for investments in bot detection, research and development, as well as the expansion of the Worldcoin project and application. During its beta phase, Worldcoin reported onboarding around two million users.
• On July 24, 2023, Worldcoin officially launched out of beta.

How does Worldcoin work?

At the core of the Worldcoin system lies the World ID, a global identity network designed to prioritize user privacy. Leveraging zero-knowledge proofs, World ID empowers individuals to authenticate their humanity online while safeguarding personal information. In the face of growing challenges in distinguishing between humans and AI on the internet, this privacy-centric approach assumes paramount importance. Through World ID, users can establish their genuine human status across various platforms, ranging from web3 systems and social networks to governmental programs.

This verification mechanism extends its impact to support fair airdrops, secure token/NFT sales, combat bots/sybil attacks on social media, and ensure an equitable distribution of limited governmental resources. Beyond immediate benefits, World ID lays the groundwork for global democratic processes, novel governance models (such as quadratic voting), and a potential avenue for AI-funded Universal Basic Income (UBI). The Worldcoin token (WLD), working in tandem with World ID, empowers users to actively participate in governing the Worldcoin protocol.

To interact with the Worldcoin protocol, individuals must first install the World App, the initial wallet app facilitating World ID creation. The Worldcoin Foundation envisions future compatibility with other wallet apps. Those seeking World ID verification visit physical imaging devices known as Orbs, typically operated by local businesses acting as Orb Operators. Employing multispectral sensors, the Orb verifies humanness and uniqueness, issuing an Orb-verified World ID. All images are promptly deleted on-device by default, respecting user data privacy unless explicit consent for Data Custody is granted. Holders of Orb-verified World IDs are entitled to claim recurring grants of free WLD tokens, subject to availability.

Operating as an open-source initiative, the Worldcoin Protocol benefits from a global community comprising developers, individuals, economists, and technologists dedicated to expanding access to the Worldcoin ecosystem. The Worldcoin Foundation, along with its subsidiary, World Assets Ltd., serves as the ecosystem steward, supporting the community until it achieves self-sufficiency and decentralization. The launch of the Worldcoin project was facilitated by Tools for Humanity (TFH), which currently oversees the operation of the World App.

Components

World ID

World ID is a privacy-focused digital identity solution created to address crucial identity-based challenges, particularly in verifying an individual's distinct personhood.

Worldcoin Token (WLD)

The Worldcoin token (WLD) serves as a utility token, affording users influence over the trajectory of the Worldcoin protocol. WLD is groundbreaking as the first token to be distributed globally and freely to individuals simply for being unique individuals.

World App

The World App is a versatile application facilitating global payments, purchases, and transfers, seamlessly integrating digital assets and traditional currencies.

Who owns Worldcoin?

Worldcoin is owned by its community and operates as a decentralized open-source protocol. The ownership model is designed to be inclusive, with the goal of becoming a public network owned by everyone. The Worldcoin Foundation serves as the initial steward of the protocol, supporting and nurturing the Worldcoin community until it achieves self-sufficiency. The decentralization process will align with Worldcoin's mission-focused ethos.

Tools for Humanity (TFH) is a global technology company that played a pivotal role in the initial development of Worldcoin and operates the World App. It is important to note that TFH operates independently of the Worldcoin Foundation and has no other affiliations with it. While TFH led the early stages of Worldcoin's development, it is governed separately from the Worldcoin Foundation. Over time, TFH will continue to develop tools that support not only Worldcoin but also broader initiatives.

Usage

The Worldcoin token (WLD) is primarily designed to function as a utility, granting users influence over the trajectory of the Worldcoin protocol. Possession of WLD, when coupled with a verified World ID, confers access, ownership, and the ability to actively participate in the protocol.

Post the mainnet launch, the community of users will collectively determine the various uses of the token. Anticipated use cases include governance, where WLD holders will have the authority to shape the future of the protocol. Additionally, users may leverage WLD tokens to facilitate specific transactions within the World App. Lastly, some users might opt to utilize WLD tokens as a store of value or as a means of making diverse payments, including remittances, artist tips, and purchasing goods and services. The versatile nature of WLD allows for a range of applications within the Worldcoin ecosystem.

The Orb

The Orb, an imaging device integral to the Worldcoin ecosystem, serves the crucial function of verifying the authenticity and uniqueness of an individual who has not yet acquired a World ID. This verification process is essential as it provides a secure and reliable method for establishing both uniqueness and personhood while upholding privacy standards.

The Orb achieves this by capturing and processing images of an individual's distinctive iris pattern. Given that each person possesses a unique iris pattern, and these patterns are exceptionally challenging to replicate, the Orb can accurately differentiate individuals without necessitating the collection of any other personal information, including their name.

The significance of utilizing biometrics, as exemplified by the Orb, lies in its ability to establish proof of uniqueness and humanness without compromising the privacy of individuals.

Worldcoin Operators

Worldcoin Operators are individuals spread across the globe who operate Orbs, playing a pivotal role in the Worldcoin ecosystem. These operators have the opportunity to earn Worldcoin tokens or fiat currency by actively promoting Worldcoin within their communities and facilitating secure sign-ups for World ID through the use of Orbs.

Crucially, Worldcoin Operators operate independently and are not considered employees of either the Worldcoin Foundation or Tools for Humanity. However, they are expected to adhere to a stringent Code of Conduct, emphasizing compliance with laws and prioritizing the protection of the public. This commitment to ethical standards ensures the responsible and lawful operation of their independent endeavors.

Tokenomics

Worldcoin (WLD) is an ERC-20 token on Ethereum Mainnet. Most transactions will occur on the Optimism network. The initial supply cap is 10B WLD with a maximum circulating supply of 143M WLD at launch. Inflation can reach up to 1.5% per year, starting after 15 years, and is determined by protocol governance.

Utility

The WLD token is a utility token with governance properties, allowing users to have a say in the protocol's future. World ID enables "one-person-one-vote" mechanisms alongside traditional governance methods. The community will determine the token's utility, which may include payments, support for causes, or as a global store of value. The Worldcoin Foundation aims to progressively decentralize governance and distribution by giving most tokens to unique human participants.

Allocation

• 75% of Worldcoin tokens will be allocated to users, while some will be used for the ecosystem fund and network operations. The Worldcoin Foundation governs token allocation with a goal to gradually decentralize governance.
• 9.8% is allocated to the Initial Development Team, including Tools for Humanity (TFH) and other service providers who developed Worldcoin.
• TFH investors hold 13.5% of tokens, providing funding for the project's pre-launch phase and developing key components like the Orb device and World App wallet.
• TFH retains 1.7% as a reserve after launch for future needs.

Highlights

• In May 2023, OpenAI CEO Sam Altman has secured $115 million in a Series C funding round for his cryptocurrency project, Worldcoin. The project aims to distribute tokens to individuals based on their unique identity confirmed through iris scanning.
• On November 25, 2023, over 2.4 million sign-ups for World ID were recorded from users in 120 countries.