Wormhole & the Wormhole Airdrop: Everything You Need to Know
Wormhole was one of the most popular protocols of 2024 with a much sought-after airdrop. Learn everything you need to about the Wormhole airdrop, eligibility, and how to claim.
Chances are you've heard about Wormhole and its highly anticipated $W token airdrop. But what exactly is Wormhole, and why was this airdrop such a big deal? In this guide, we’ll break down everything you need to know about Wormhole, its groundbreaking technology, and the ins and outs of the $W token airdrop.
What is Wormhole?
Wormhole is a cross-chain messaging protocol that allows data and digital assets to be transferred seamlessly between different blockchains. Think of it as a bridge connecting separate blockchain ecosystems, enabling them to communicate with each other in a way that wasn’t possible before. This can be anything from sending tokens between Ethereum and Solana to enabling dApps to function across multiple blockchains.
The protocol is already integrated with over 30 blockchains, and more than 200 applications are using it to send over one billion cross-chain messages. It’s supported by big-name projects like Uniswap, Circle, and Synthetix.
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What does Wormhole do?
At its core, Wormhole helps developers create multi-chain applications by facilitating the transfer of data and assets between blockchains. For example:
A dApp on Ethereum can now communicate with Solana to process faster transactions.
NFT communities on different blockchains can hold joint votes on important decisions.
It achieves this through Wormhole Connect, a developer tool that integrates cross-chain functionality into applications without the need for creating a new token bridge. Instead of being just another token swap platform, Wormhole allows for cross-chain state attestations and messages.
How does Wormhole work?
Wormhole uses Guardian nodes, a network of validators that monitor and verify transfers across blockchains. When a user sends an asset or message from one blockchain to another, these Guardians verify the action and then trigger a corresponding transaction on the destination blockchain.
In essence, Wormhole is like a messenger between blockchains, passing verified information and assets from one network to another.
What is the $W token?
The $W token is Wormhole’s native governance token, which launched in April 2024. It plays a central role in decentralizing the protocol’s governance, allowing token holders to participate in important decision-making processes, like protocol upgrades, smart contract changes, and more.
Unlike other governance tokens, $W is designed to function across multiple blockchains. At launch, it was available on Solana, Ethereum, and EVM-compatible Layer 2s, making it the first-ever multi-chain governance system.
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What is the $W token used for?
Governance: $W holders can propose and vote on decisions that will affect the future of the Wormhole protocol.
Staking: Validators and delegators can stake $W tokens to help secure the network and earn rewards.
Participation: As Wormhole decentralizes further, the $W token will play a key role in directing the protocol’s governance through its decentralized autonomous organization (DAO).
Wormhole airdrop
On April 3, 2024, Wormhole distributed 617 million $W tokens to its community and early users. This airdrop represented 6% of the total supply and was worth around $3 billion at launch.
Who was eligible for the Wormhole airdrop?
Wormhole rewarded users who had been actively using its ecosystem, focusing on those who had interacted with:
Wormhole-connected blockchains
dApps that leverage Wormhole
The Wormhole community, including Discord users and certain NFT communities.
The eligibility for the airdrop was determined based on a snapshot taken on February 6, 2024, which captured user activity from the protocol’s early days up until that point. In total, over 400,000 wallets were eligible for the airdrop.
How was the Wormhole airdrop distributed?
The airdrop was broken down into two main parts:
On-chain activity: 500 million tokens were distributed to users who had participated in the Wormhole ecosystem.
Community users: 117.3 million tokens went to active community members, such as Discord participants and top stakers from other Wormhole-related projects like Pyth.
The total supply of $W is capped at 10 billion tokens, with an initial circulating supply of 1.8 billion. The remaining tokens are set to be unlocked gradually over the next four years.
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How to claim the Wormhole airdrop
If you were eligible for the airdrop, claiming your $W tokens was straightforward if you haven’t already:
Check eligibility: First, confirm your eligibility by visiting Wormhole’s official airdrop page and using their Airdrop Checker.
Connect wallet: Connect your eligible Solana wallet (or others used in the Wormhole ecosystem) to claim your tokens.
Claim tokens: If eligible, the tokens will be transferred to your wallet once the transaction is confirmed.
The Wormhole airdrop doesn’t have a set expiration date, but if you think you’re eligible and haven’t claimed yet, it’s advisable to claim tokens promptly to avoid any issues, such as the tokens being reallocated or burned later on.
Why was the Wormhole airdrop significant?
Aside from the obvious excitement of receiving free tokens, the Wormhole airdrop marked a key step in decentralizing the governance of the protocol. By distributing $W tokens to its most loyal and active users, Wormhole ensured that those who care most about the project have a say in its future.
The launch of the $W token also introduced the world’s first multi-chain governance system, enabling $W holders to participate in governance decisions across multiple blockchains simultaneously. This is a game-changer for decentralized applications, as it brings the benefits of cross-chain governance to a new level.
What’s next for Wormhole?
While the airdrop and $W token launch were major milestones, Wormhole’s journey is just beginning. As the protocol continues to evolve, here’s what to expect:
Progressive decentralization: Wormhole plans to gradually turn over control of the protocol to its DAO, giving $W token holders more influence over its future.
Governance voting: Soon, $W holders will be able to propose and vote on changes like adding new blockchain integrations, upgrading smart contracts, and adjusting fees.
Expansion of multi-chain applications: As blockchain technology evolves, Wormhole will continue to be a leader in enabling seamless communication between different blockchain ecosystems.
Wormhole airdrop taxes
If you received $W tokens from the airdrop, it’s important to remember that these tokens may be subject to taxes. In the US, the IRS generally treats airdrops as ordinary income, meaning you could owe taxes on the value of the tokens when you receive them. Additionally, if you sell your tokens later, any gains (or losses) could be subject to capital gains tax. You can learn more in our airdrops tax guide.
To avoid any surprises come tax season, tools like Koinly can help you calculate and report your crypto taxes properly.
FAQs
What happened in the Wormhole hack?
In February 2022, Wormhole suffered one of the most significant hacks in crypto history, losing $321 million worth of digital assets. The incident occurred when a hacker exploited a vulnerability in the protocol’s cross-chain bridge to mint 120,000 Wrapped Ethereum (wETH) on Solana without providing the necessary collateral on Ethereum. This breach exposed a critical flaw in the system, allowing the hacker to move the stolen wETH to other wallets, including some on Ethereum and Solana.
How did Wormhole get hacked?
The exploit targeted Wormhole's Ethereum-Solana bridge, which allows users to move Ethereum assets (like ETH) onto Solana by "wrapping" them as wETH. The hacker found a bug in the bridge's code that allowed them to bypass verification, essentially minting new wETH on Solana without locking any ETH on Ethereum as collateral.
Once the fake wETH was minted, the hacker swapped it for real ETH and other assets, moving the funds through different blockchains to avoid detection.
Did Wormhole refund users after the hack?
Wormhole’s team acted quickly once the attack was discovered. The protocol was paused, and Jump Crypto, a major backer of Wormhole, stepped in to cover the $321 million loss to ensure users weren’t impacted. By doing this, Wormhole was able to restore the platform’s functionality, and users could continue transferring assets across blockchains.
The stolen funds were never recovered, but by making the users whole, Wormhole managed to rebuild trust with its community and prevent a complete collapse of the protocol.
In response to the hack, Wormhole also implemented several critical upgrades to its security framework:
Third-party audits: Wormhole conducted thorough audits of its code to find and patch vulnerabilities. These audits were done by reputable security firms to ensure the protocol was secure against future attacks.
Guardian node updates: The role of Guardian nodes, which are responsible for validating cross-chain transfers, was strengthened to enhance the overall security of the bridge.
Ongoing monitoring: Wormhole is committed to ongoing security updates and monitoring to detect any suspicious activity or vulnerabilities in real-time.
Is the Wormhole airdrop legitimate?
Yes, the Wormhole airdrop is a legitimate event initiated by the Wormhole team. It’s designed to reward users who have been active within the Wormhole ecosystem and support its decentralization goals.
How big is the Wormhole airdrop?
The Wormhole airdrop involved the distribution of 674.8 million $W tokens to over 400,000 eligible wallets, with the average airdrop value being approximately $1,687 per wallet.
How long do I have to claim the Wormhole airdrop?
There is no specified deadline to claim the Wormhole airdrop, but it’s recommended to do so promptly. Any unclaimed tokens may eventually be reallocated or burned, so it's best to claim them as soon as possible.
