Worldcoin Tokenomics

Mission

The mission of the Worldcoin project is to build the world’s largest identity and financial network as a public utility, giving ownership to everyone. A key component of the project is the development of the infrastructure that will be important for a world where AI plays an increasingly important role.

The project’s goals regarding the WLD token are as follows:

1. The majority of WLD tokens will be given to individuals – simply for being a unique human.
2. The majority of humans who are alive today will receive WLD tokens, making WLD the most widely distributed digital currency.
3. The WLD token, alongside World ID, will be used for protocol governance.
4. The WLD token will form the foundation of the largest privacy-preserving identity and financial network.

Token Overview

Availability: Worldcoin (WLD) tokens are not available to people or companies who are residents of, or are located, incorporated or have a registered agent in, the United States or certain other restricted territories. However, World ID and TFH’s World App remain available in the United States. More details can be found in the Terms of Use, including additional restrictions on Eligibility (see Section 1.2).

Safety reminder: Free WLD tokens will only be claimable via World App – there is no airdrop of WLD outside the World App. There is no “ICO” of WLD. Watch out for fake apps and fake WLD tokens! The WLD token is only deployed on Ethereum and Optimism at the above addresses.

Important User Information: Crypto products can be highly risky and their regulatory treatment is unsettled in many jurisdictions. There may be no regulatory recourse for any loss from transactions in WLD. Any value ascribed to WLD may change quickly and may be lost in its entirety. For more information, visit www.worldcoin.org/risks.

Building a global identity and financial network

The mission of the Worldcoin project is to build the world’s largest identity and financial network as a public utility, giving ownership to everyone. A key component of the Worldcoin project is the development of the foundational infrastructure that will be important for a world where AI plays an increasingly large role.

How does Worldcoin work?

The Worldcoin system revolves around World ID, a privacy-preserving global identity network. World ID enables users to verify their humanness online while maintaining their privacy through zero-knowledge proofs. This has become particularly important given recent advancements in AI, as it is now increasingly difficult to distinguish between humans and AI on the internet.

Using World ID, individuals will be able to prove that they are a real, unique human to any platform that integrates with the protocol, including to web3 systems, social networking sites, and governmental programs. This will enable fair airdrops or token/NFT sales, provide protection against bots/sybil attacks on social media, and enable the fairer distribution of limited governmental resources. Furthermore, World ID can also enable global democratic processes and novel forms of governance (e.g., via quadratic voting), and it may eventually support a path to AI-funded UBI. The Worldcoin token (WLD), alongside World ID, will let users participate in governing the Worldcoin protocol.

To engage with the Worldcoin protocol, individuals must first download World App, the first wallet app that supports the creation of a World ID. (In the future, the Worldcoin Foundation expects to also whitelist other wallet apps.) Individuals visit a physical imaging device called the Orb to get their World ID Orb-verified. Most Orbs are operated by a network of independent local businesses called Orb Operators. The Orb uses multispectral sensors to verify humanness and uniqueness to issue an Orb-verified World ID, with all images being promptly deleted on-device per default (absent explicit consent to Data Custody). All Orb-verified World IDs holders are entitled to claim recurring grants of free WLD tokens (subject to availability).

The Worldcoin Protocol is an open-source protocol, supported by a global community of developers, individuals, economists and technologists engaged in expanding participation in, and access to, the Worldcoin ecosystem. The Worldcoin Foundation is the steward of the Worldcoin ecosystem and, along with its subsidiary, World Assets Ltd., will support the Worldcoin community until it becomes self-sufficient and decentralized. Tools for Humanity (TFH) helped launch the Worldcoin project and is responsible for the operation of World App.

Retrospective

A successful pre-launch phase of the Worldcoin project ran from May 2021 until July 2023. During this time period, more than 2 million individuals verified their World IDs at an Orb across more than 30 different countries. Subject to Availability, these users have already been allocated more than 43M WLD tokens before launch. At launch, Worldcoin begins the rollout of 1,500 Orbs to meet the global demand for World ID.

Introducing WLD

The WLD token is designed as a utility token with governance properties, empowering users by giving them a say over the future of the protocol. Beyond conventional “one-token-one-vote” governance mechanisms, the introduction of World ID paves the way for “one-person-one-vote” mechanisms. These two mechanisms can be combined in many ways to enable new ways of governance. After launch, the Worldcoin Foundation will solicit proposals and work with the community on how World ID and the WLD token should interact in Worldcoin’s governance model.

The community of users will determine the token's utility, but a few other use cases in addition to governance could emerge. For example, users may decide to use the WLD token to pay for certain actions in World App or another wallet app, to make other payments (e.g., remittances, tip artists, buy and sell goods and services), or to signal their approval or support for other causes or initiatives. In the long-run, the WLD token may also be treated as a global store of value.

Following launch, the Worldcoin Foundation will govern the project and work towards progressively decentralizing governance and the ecosystem. The goal of decentralization will be aided by the Worldcoin Foundation’s unique approach of giving the majority of the WLD token supply to participants of the Worldcoin protocol – simply for being a unique human. This has the potential to make WLD the most widely distributed digital currency.

The WLD Token

Details on initial token supply and inflation. For 15 years following launch, the supply cap is fixed to 10B WLD (enforced by the WLD smart contract). After 15 years, governance may decide to implement an inflation rate of up to 1.5% per year if it deems necessary for the long-term sustainability of the protocol. Governance will also decide how to allocate these newly minted tokens (if any). The inflation cap of 1.5% per year is enforced by the WLD smart contract. Per default, unless changed via governance, the inflation rate is set to 0%.

WLD Token Allocation

Comment on TFH + Team Token Allocation

The token allocation to TFH and the Initial Development Team has increased to 25% from the 20% estimate that was originally announced by TFH in a blog post in October 2021. Developing and launching the network responsibly—that is, in a way best for users of the Worldcoin protocol and the mission of the Worldcoin project—proved to be more complex and costly than TFH initially anticipated. Hardware development and manufacturing, in particular, proved expensive, requiring additional funds from TFH investors. This, combined with a challenging market environment, led to increasing this allocation. That said, the Worldcoin Foundation remains fully committed to allocating the majority of the 10B token supply to Worldcoin users, as reflected in its token allocation goal.

Unlocked Supply and Circulating Supply

1. Circulating supply denotes the total amount of WLD tokens that are freely circulating, meaning they do not have any specific transfer restrictions imposed upon them.
2. Unlocked supply denotes the total amount of WLD tokens that are either part of the circulating supply or are unlocked but subject to the protocol's governance discretion on their rate of release into the circulating supply.

Unlocked Supply Schedule

An important feature of the unlocked supply schedule is that (a) team and investor tokens are locked up at launch, while (b) tokens claimed by users are not locked up. The following figure shows the 15-year WLD unlock schedule. Importantly, governance will determine the rate at which WLD tokens from the Worldcoin Community category are introduced into the circulating supply. This will depend on several factors, particularly the speed at which the number of Worldcoin users grows. Thus, the unlocked supply represents an upper bound on the maximum circulating supply.

Figure 3: 15-Year WLD unlocked supply schedule (representing an upper bound on circulating supply). Governance controls the rate at which the unlocked Worldcoin Community tokens are introduced into the circulating supply. After year 15, governance may enact an inflation rate of up to 1.5% per year.

Note: For simplicity, the figure assumes that all 2.5B WLD allocated to TFH and Initial Development Team will be assigned at launch, even though some WLD tokens will remain unassigned at launch. Given that these unassigned tokens will only be assigned after launch, and may then be subject to additional lock-up periods, these tokens will likely unlock somewhat later than shown in the figure. In that sense, the figure shows the earliest unlocking of all tokens.

Details regarding the unlocked supply schedule

Worldcoin Community tokens

Ahead of launch, all 7.5B WLD allocated to the Worldcoin Community will be minted; however, the vast majority of those tokens will unlock over 15 years (details below). Recall that the Worldcoin Foundation is responsible for the allocation of these tokens. Thus, this unlock schedule constrains the pace at which the Worldcoin Foundation can allocate tokens to stakeholders in the ecosystem. The unlock schedule of tokens is enforced by four smart contracts (1,2,3,4). Importantly, the tokens allocated to users and Operators are not locked up.

The WLD amounts shown in the following table unlock across the specified time periods. Within each time period, an equal amount of tokens unlocks each calendar day.

Note: To facilitate the scale that Worldcoin aims to achieve over the next few years, a substantial quantity of tokens may be required for the Worldcoin Community, potentially within the first few years after launch. This is why 4.0B WLD of the Worldcoin Community tokens are unlocked over the initial three years. However, the rate at which these tokens enter circulating supply is controlled by governance, and it depends on the speed of the network's growth.

TFH Investor Tokens

The tokens allocated to TFH investors will be contractually locked up for 12 months after those investors exercise their respective token warrants (which they can do at launch) and then unlocked on a daily basis evenly over the following 24 months. Figure 3 assumes that all investors elect to exercise their warrant, for its full token allocation, at launch; this may overstate actual unlocked token supply as, in practice, not every investor may choose to exercise their warrant all at once and as early as possible.

Initial Development Team Tokens

The tokens that have already been allocated to past and current team members will be contractually locked up for 12 months after launch and are then unlocked on a daily basis evenly over the following 24 months.

TFH Reserve

The tokens allocated to the TFH Reserve will be contractually locked up for at least as long as the lock-up period applicable to TFH investors and team members. The exact lock-up period will depend on when these tokens are allocated.

Circulating Supply at Launch

Figure 3 shows the amount of unlocked WLD tokens over time. This is different from circulating supply, which excludes unlocked WLD tokens that governance has not yet allocated for a specific purpose.

The maximum circulating supply of WLD at launch is 143M WLD, consisting of:

1. 43M WLD allocated to users who verified with the Orb during the pre-launch phase of the project
2. 100M WLD loaned to market makers operating outside of the US (the loan expires after 3 months)

The WLD token starts with a relatively low circulating supply of at most 143M WLD (i.e., 1.43% of initial total supply). This is due to the goal of creating a network of as many human beings as possible – and to achieve this, the majority of the WLD token supply will be given to new and existing users over the years to come (see below for details).

During the launch week, the amount of tokens allocated to users is expected to increase significantly given that new as well as existing Orb-verified users will be able to claim the Genesis Grant worth 25 WLD. Over time, the circulating supply of WLD will continuously expand. In the first year after launch (subject to Availability), this will primarily happen in two ways:

1. New and existing Orb-verified individuals receive user grants
2. Orb Operators will soon receive WLD tokens for Orb-verifying individuals (see below)

The circulating supply of WLD can be tracked live on Dune.

Tokens from the pre-launch phase. The 43M WLD allocated to users during the pre-launch phase of the project were given out in the form of Beta WLD tokens. Ahead of launch, the WLD token smart contract has been deployed, and by taking an action in the World App, all individuals who have previously received Beta WLD tokens will receive the same amount in WLD tokens. Given that not all users may take this action before launch, the actual amount of WLD held by users at launch may be lower than 43M.

Foundation’s Token Allocation Goal

Until decentralization and self-sufficiency, the Worldcoin Foundation will support the Worldcoin ecosystem. As part of its role, the Foundation will allocate the Worldcoin Community tokens primarily towards three different purposes: (1) user grants (subject to the “Availability” noted above), (2) network operations, and (3) ecosystem funds,

However, there are significant variables in terms of how the Worldcoin project will evolve over time, including the number of Orbs deployed in the field, the number of new user verifications per week, the activity of Worldcoin’s users, the number and location of merchants and others seeking to utilize the functionalities of the Worldcoin project, and numerous other known and unknown factors. Therefore, the final allocation of the Worldcoin Community tokens cannot yet be determined. Nonetheless, taking into account the project’s objectives, the Worldcoin Foundation has formulated an aspirational token allocation goal, as shown in the following figure:

The Worldcoin Foundation seeks to maximize the number of WLD tokens allocated to users. Thus, the Foundation may allocate fewer tokens to network operations and the ecosystem fund than shown in the above figure, to maximize the number of tokens going directly to users.

User Grants (target allocation: ≥ 60%)

To achieve the goal of creating a network of as many human beings as possible, the majority of WLD tokens will be given to individuals over time in the form of user grants (aka “Worldcoin Grants”) - simply for being a unique human. Given that equality has been one of the project’s guiding values from the beginning (see the Worldcoin Founding Commitments), there is no large one-time airdrop at launch, which would have primarily benefited a small group of people who signed up before launch. Instead, a different mechanism has been established to allocate WLD tokens to users, based on the following three principles:

1. Unique humanness. Every unique human is eligible to claim user grants (subject to the “Availability” noted above).
2. Fairness. At any given point in time, all Orb-verified individuals, across all applicable countries, can claim the same amount of tokens (subject to the “Availability” noted above).
3. Incentives: User grants are given out in a recurring fashion, and the grant amounts decrease over time. This gives users an additional incentive to join the network early and to regularly engage with the protocol, thereby addressing the cold start problem inherent to launching a new network.

How to claim your user grants (for Orb-verified individuals)

If you have verified with the Orb (subject to the “Availability” noted above), then you can claim the following two types of user grants via World App:

1. Welcome Grant: Immediately after verifying at the Orb, you can claim your Welcome Grant to celebrate that you have joined the World ID network. At launch, the Welcome Grant amount will be 1 WLD. The amount is expected to decrease over time.
2. Recurring grants: After verifying with the Orb and following a short waiting period (one day at launch), Orb-verified individuals can claim their first recurring grant. Each recurring grant is only available for a certain time period (one week at launch), after which it can no longer be claimed. After one grant period ends, a new one begins, and all Orb-verified individuals can claim this grant. The amount of the first such recurring grant after launch (the Genesis Grant) will be 25 WLD. The amounts of the recurring grants are expected to decrease over time. The recurring grants are allocated by a smart contract (note that, in the future, a different smart contract may be deployed to allocate recurring grants).

When a new grant becomes available for claiming, this is prominently displayed in the World App. Orb-verified individuals claim the grant by hitting the “Claim Grant'' button and then confirming that their World ID should be used to verify their eligibility. Individuals will receive their WLD tokens on Optimism. Unclaimed WLD tokens remain in the Worldcoin Community pool. Importantly, “claim” refers to the process by which user grants are received and is not intended to create or imply any legal relationship between any individual and the Worldcoin Foundation or any other entity.

Governance over user grants. The grant amounts are set by the protocol’s governance. At launch, governance will be implemented via the Worldcoin Foundation, but over time, governance will be increasingly decentralized. This means that governance could also alter the grant mechanism. For example, once the system has stabilized, governance may decide to automatically update the grant amounts via a smart contract.

Long-term sustainability of user grants. To achieve the goal of providing WLD tokens to every living human being (subject to the “Availability” noted above), governance may also decide to phase out the recurring grants after a few years and only keep the Welcome grants, thereby reserving the remaining tokens for new users in the future. As explained above, 15 years after launch, governance may also decide on enacting an inflation rate of up to 1.5% per year, if this is deemed necessary to continue the user grants mechanism into the future.

How to reserve your user grants (for unverified individuals)

At launch, World App will introduce "grant reservations." This is a new capability, enabling individuals to reserve user grants (subject to the “Availability” noted above), even if they are not yet verified by the Orb. The objective of these reservations is to allow as many people as possible to receive user grants early on, irrespective of their geographical distance from an Orb.

Details on grant reservations:

1. Any individual who is not yet Orb-verified can reserve user grants (subject to the “Availability” noted above).
2. The grant amounts and time periods will be the same as those for Orb-verified individuals.
3. For each grant, there will be a cap on the number of reservations (which will be visible in the World App) – and reservations will be given out on a first-come-first-served basis.
4. After you verify your uniqueness with an Orb, you will receive your previously reserved WLD tokens.
5. After verifying your uniqueness with an Orb you can redeem your reservations to receive your previously reserved WLD tokens. Note that the ability to redeem tokens will only become available a few weeks after launch.
6. Grant reservations expire after one year. Thus, to receive your reserved tokens, you must verify with an Orb within one year after you have started to reserve your tokens.

The reservation cap is set by the protocol’s governance.

User token allocations during the pre-launch phase

During the pre-launch phase of the Worldcoin project, which lasted from May 2021 until July 2023, WLD tokens were allocated to users in four different stages (subject to the “Availability” noted above):

1. The alpha phase lasted from May 2021 until January 2022. During this time period, users engaged with a web browser-based app and an amount of WLD tokens worth $20 was reserved for each new user who verified with an Orb. Subject to the “Availability” noted above, those users can claim the corresponding amount of WLD tokens after launch when the market reaches a price for the token. Since May 2023, these same users can also claim an additional 25 Beta WLD tokens.
2. In November 2021, the beta phase started with the release of the first mobile app of the Worldcoin project. Between November 2021 and January 2022, the mobile app became available in more countries. In those countries where the mobile app was already available (subject to the “Availability” noted above), individuals who verified with an Orb could claim 25 Beta WLD tokens.
3. From February 2021 and up until launch, only the mobile app could be used to verify with an Orb. Between February 2021 and May 2023 (subject to the “Availability” noted above), all individuals who verified with an Orb could claim 25 Beta WLD tokens.
4. From May 2023 and up until launch (subject to the “Availability” noted above), each verified individual could claim 1 Beta WLD token per calendar week. These weekly grants were available to new as well as existing users.

Note: Ahead of launch, the WLD token smart contract has been deployed, and by taking an action in the World App, all individuals who have previously received Beta WLD tokens will receive the same amount in WLD tokens.

Network Operation (target allocation: ≤ 10%)

A portion of the WLD token supply allocated to the Worldcoin Community is intended to be used to fund network operations. This section describes the main operational costs for the network, though this list is not intended to be exhaustive. Where necessary, these costs may be covered by the Worldcoin Foundation converting a portion of WLD tokens allocated to network operation into fiat or other currency.

Decentralizing network operations. Before launch, all operational tasks were performed by TFH or other service providers. However, after launch, the Worldcoin Foundation will take over responsibility for operations and the decentralization of the network. This may include, for example, adding additional service providers and robust decentralized structures that ensure the long-term sustainability of the operations of the network. The initial focus of the Worldcoin Foundation will be to develop structures that incentivize the decentralization of the following areas (described in more detail below):

1. Orb manufacturing
2. Orb operations
3. Other operations
4. Market operations support
5. Sequencer and uniqueness service operation
6. User engagement and community outreach
7. Bug bounty programs

Orb manufacturing

Prior to launch, the cost of manufacturing the first approx. 2,000 Orbs was borne by TFH. In the long-run, the Worldcoin Foundation expects to incentivize deployment of more than 50,000 Orbs or similar biometric verification devices worldwide. Therefore, part of the WLD token supply will be used to fund ongoing manufacturing costs. To this end, the Worldcoin Foundation plans to engage TFH and other licensed service providers to manufacture the Orb or devices similar to the Orb.

Orb operations

Orb Operators are independent ecosystem participants who operate the Orbs and receive Operator rewards for verifying individuals at the Orb. It is important that Operators provide users with a high-quality experience by educating them about the project and supporting them during the verification process. To align the Operators’ financial interests with the objectives of the Worldcoin project, Operator rewards are impacted by measures of sign-up quality.

To ensure the long-term financial viability of the Worldcoin project (given the Foundation’s long-term goal of deploying 50,000 Orbs), TFH has been trialing the use of competitive mechanisms to determine fair Operator rewards. This also encourages Operators to innovate and quickly adapt to the changing needs of the project.

After a transitional phase, it is expected that all Operator rewards will be paid in WLD (subject to the “Availability” noted above). During the transitional phase, some Operator rewards will be paid in USDC.

Other operations

Part of the WLD token supply will be used by Worldcoin Foundation to fund other operational costs, which includes logistics and customs associated with Orb deployment, production of equipment provided to Operators, etc.

Market operations support

Part of the WLD token supply will be used by Worldcoin Foundation to fund market operations support, which includes the recruitment, training, and coordination of the decentralized network of Operators around the world.

User engagement initiatives and community outreach

When launching in a new country or region, part of the WLD token supply may be used by Worldcoin Foundation to fund user engagement initiatives and community outreach programs (e.g., partnering with local organizations).

Sequencer and uniqueness service operation

When a user verifies with an Orb, the uniqueness of their biometric information needs to be verified and the proof of uniqueness needs to be written to the blockchain. Part of the token supply is allocated towards the costs of these services. At launch, the sequencer and uniqueness service are operated by TFH; in the future, these services are expected to be decentralized.

Bug bounty programs

While the Worldcoin hardware and software have been extensively audited by external security auditing companies, the Worldcoin Foundation will additionally set up bug bounty programs for the Orb hardware and firmware, the smart contracts, and other software. These bug bounty programs may also function as tools for the progressive decentralization of the project.

Ecosystem Fund (target allocation: ≤ 5%)

The ecosystem fund is intended to be used by the Worldcoin Foundation to support activities for the continued development and decentralization of the Worldcoin project. These costs are largely independent of the network size or the size of the on-the-ground operations.

Protocol R&D

Some funds are expected to be used by the Worldcoin Foundation for continued development of the Worldcoin protocol and related software. This could include, for example, the development of additional Worldcoin client apps.

Orb R&D

Ecosystem funds will also be used for continued research and development regarding the Orb hardware and software, for example, towards new hardware innovations, security mechanisms, and new features.

Standards development, audits, and certification

Some funds are expected to be used by the Worldcoin Foundation to foster standardization of the different parts of the Worldcoin protocol, including different wallet apps, the Orb, and the on-chain protocol. Standards help decentralization by making it easier for different parties to become part of the Worldcoin ecosystem. Furthermore, some funds are expected to be used for audits (e.g., of new biometric devices or of new wallet apps) as well as for certifying new service providers.

Ecosystem grants

Some funds are expected to be used for ecosystem grants, which are issued for the development of new protocols, systems, and integrations that are part of the Worldcoin ecosystem, as well as for research and development.

Incentive programs

Some funds are expected to be used for incentive programs that directly incentivize activities by persons, companies, and protocols to contribute to the growth of the ecosystem.

Liquidity Provisioning

World Assets Ltd. (a subsidiary of the Worldcoin Foundation) has entered into loan agreements with five market makers operating outside of the US. The goal of engaging these entities is to ensure sufficient liquidity for WLD traded on centralized exchanges outside the US, to facilitate price discovery, and to enhance price stability of WLD.

Collectively, the five entities have received loans of 100M WLD for a time period of 3 months after token launch. At the end of the three months, each entity must return its loan or alternatively it may elect to purchase any amount of tokens up to the loan amount it has received. The price per WLD for this purchase will be set according to the following formula: $2.00 + ($0.04 * X), with X being equal to (i) the amount of tokens being purchased, divided by (ii) one million.

Worldcoin Foundation operations

Part of the ecosystem fund will be used to fund a small staff working at the Worldcoin Foundation, along with associated operational costs (e.g., legal, administration).

Technical information

Contracts and Addresses

Smart Contracts

Wallets

Links to technical documentation

1. See here for technical details on the Orb.
2. See here for technical details on World ID and the overall protocol architecture.

Security Audits

Two separate security assessments were conducted on the off-chain and on-chain components of the protocol, specifically related to its use of blockchain technologies, cryptography, and smart contracts. These assessments were conducted over a period of several months and conducted by the audit firms Nethermind and Least Authority. The audits covered the following areas:

1. Correctness of the implementation, including cryptographic constructions and primitives and appropriate use of smart contract constructs
2. Common and case-specific implementation errors
3. Adversarial actions and other attacks on the code
4. Key management: secure key storage and proper management of encryption and signing keys
5. Exposure of any critical information during user interactions
6. Resistance to DDoS (Distributed Denial of Service) and similar attacks
7. Vulnerabilities in the code leading to adversarial actions and other attacks
8. Protection against malicious attacks and other methods of exploitation
9. Performance problems or other potential impacts on performance
10. Data privacy, data leaking, and information integrity
11. Inappropriate permissions, privilege escalation, and excess authority

Full details on the assessments can be found in the reports linked here.

Q&A

How do the Optimism contracts relate to the Ethereum contracts?

The WLD token contract is deployed on Ethereum Mainnet and the token is bridged to the Optimism “layer 2” network. However, Worldcoin Foundation expects that most of the activity in WLD tokens will happen on Optimism where Orb-verified individuals receive their user grants. In addition, the World App only interacts with the Optimism network. The reasons for choosing Optimism over Ethereum as the primary venue were scalability and transaction costs.

Who pays the transaction costs?

World App users do not currently incur gas costs; the gas fees for claiming WLD and performing swaps are currently paid by TFH. When users verify their identity to a third-party application via World ID, this does not incur gas costs for the protocol – however, the third-party application may charge users gas fees (depending on whether they verify the proof on-chain or off-chain). When using the swap feature in World App, users do pay any fees incurred on third-party platforms.

How are the Worldcoin Community tokens stored? Do you use a custody provider?

The majority of the Worldcoin Community tokens are stored in a cold wallet. Additionally, several hot wallets are used to manage everyday operations. Tokens are typically only stored in these hot wallets for a short period of time and these wallets only store as many tokens as needed.

Who controls the WLD token contract? Is it upgradable? Does anyone have minting rights?

1. The WLD token contract is not upgradable.
2. No control can be exercised over the contract, except for setting the “minter” address (see below)
3. For 15 years following the launch, no address is able to mint any new tokens.
4. After 15 years, a “minter” address (controlled by protocol governance) can mint up to 1.5% new WLD per year. Governance decides how to allocate these newly minted tokens (if any).

Who has developed the Worldcoin project? How was development of the Worldcoin project funded?

Initial research and development for the Worldcoin project was conducted by Tools for Humanity and other partners. TFH’s activities from its inception through launch have been funded through venture capital investments in exchange for equity in Tools for Humanity alongside a hedge of warrants giving investors the option to later purchase WLD tokens.

What are the involved entities and where are they incorporated?

The Worldcoin Foundation is an exempted limited guarantee foundation company, incorporated in the Cayman Islands. It is “memberless,” meaning it has no shareholders.

World Assets Limited is a business company incorporated in the British Virgin Islands. The Worldcoin Foundation is the sole member of World Assets Ltd. This entity is responsible for issuing the 7.5B Worldcoin tokens (WLD) that have been allocated to the Worldcoin community.

More information about these entities, including incorporation documentation and equity composition, can be found at worldcoin.foundation/information.

Tools for Humanity (TFH) is a Delaware corporation headquartered in San Francisco, California (US), with a wholly-owned subsidiary, Tools for Humanity GmbH based in Germany. TFH supported Worldcoin’s multi-year pre-launch phase, during which it developed the Orb, the first version of the protocol, and the World App, the first wallet for the Worldcoin ecosystem, which it still operates today. Governed entirely independently of the Worldcoin Foundation, it is responsible for issuing the 2.5B Worldcoin tokens (WLD) that have been allocated to the Initial Development Team, TFH Investors, and the TFH Reserve. Founded in 2019, TFH has grown to a team of approximately 70 people today. However, the Worldcoin project is an open protocol that anyone can contribute to and build on.

How do you protect against insider trading?

With respect to this issue, of particular note is that the fully transparent transaction ledger of the Ethereum blockchain provides real-time public access to all WLD transactions. This, combined with the fact that the network is undergoing decentralization and uses open source software, may suggest that there is not any material non-public information (MNPI) that anyone involved with the project may possess. Nevertheless, both the Worldcoin Foundation and TFH have adopted policies prohibiting insider trading, reaffirming the expectation of ethical conduct and integrity, and seeking to preserve the integrity of the market for WLD. In the unlikely event that any staff members or consultants of these entities have access to MNPI, they are strictly prohibited from trading WLD when they are in possession of MNPI. Staff are also prohibited from sharing MNPI with anyone. In addition, both entities may impose blackout periods during which all trading is prohibited, and overall strongly discourage staff from trading WLD at any time.

Important User Information and Disclaimers

Crypto products can be highly risky and their regulatory treatment is unsettled in many jurisdictions. There may be no regulatory recourse for any loss from transactions in WLD. Any value ascribed to WLD may change quickly and may be lost in its entirety. Further, the technologies comprising Worldcoin, including the WLD token, are experimental in nature. There is no guarantee that the network will operate as planned. For more information, visit www.worldcoin.org/risks.

Nothing herein constitutes an offer to sell, or the solicitation of an offer to buy, Worldcoin tokens (WLD). Nor does this content constitute investment advice. Holding, buying, or selling WLD may not be permitted where you live, and it is your responsibility to comply with all applicable laws. Worldcoin (WLD) tokens are not intended to be available to residents of the United States or certain other restricted territories. More details can be found at www.worldcoin.org/tos.

This document contains estimates and forward-looking statements regarding the intended actions and objectives of the Worldcoin Foundation and the Worldcoin project, based largely on current expectations and projections about future events for which the outcome is uncertain. It is therefore subject to a number of known and unknown risks, including those described at www.worldcoin.org/risks, that could cause the actual outcomes to differ materially from what is expressed or implied herein. Readers are cautioned not to put undue reliance on these future-looking estimates and statements. The content of this document speaks only as of the date thereof.

Disclaimer

PLEASE READ THE ENTIRETY OF THIS “NOTICE AND DISCLAIMER” SECTION CAREFULLY. NOTHING HEREIN CONSTITUTES LEGAL, FINANCIAL, BUSINESS, INVESTMENT OR TAX ADVICE AND YOU SHOULD CONSULT YOUR OWN LEGAL, FINANCIAL, BUSINESS, INVESTMENT, TAX OR OTHER PROFESSIONAL ADVISOR(S) BEFORE ENGAGING IN ANY ACTIVITY IN CONNECTION HEREWITH. NEITHER THE WORLD FOUNDATION (THE FOUNDATION) AND ANY OF THE PROJECT PARTICIPANTS (TOGETHER WITH THE PROJECT PARTICIPANTS, THE WORLD NETWORK) WHO HAVE WORKED ON THE WORLD NETWORK (AS DESCRIBED HEREIN) OR DEVELOPERS OF THE WORLD NETWORK IN ANY CAPACITY WHATSOEVER, ANY DISTRIBUTOR/VENDOR OF WLD TOKENS (THE DISTRIBUTOR), NOR ANY SERVICE PROVIDER SHALL BE LIABLE FOR ANY KIND OF DIRECT OR INDIRECT DAMAGE OR LOSS WHATSOEVER WHICH YOU MAY SUFFER IN CONNECTION WITH ACCESSING THIS WHITEPAPER, THE WEBSITE AT HTTPS:// WORLD.ORG (THE WEBSITE) OR ANY OTHER WEBSITES OR MATERIALS PUBLISHED BY THE FOUNDATION.

Crypto Products

Crypto products can be highly risky and their regulatory treatment is unsettled in many jurisdictions. There may be no regulatory recourse for any loss from transactions in WLD tokens. Any value ascribed to WLD tokens may change quickly and may be lost in its entirety. Further, the technologies comprising the World Network, including the WLD token, are experimental in nature. There is no guarantee that the network will operate as planned. For more information, visit https://world.org/risks. Holding, buying, or selling WLD tokens may not be permitted where you live, and it is your responsibility to comply with all applicable laws. Worldcoin (WLD) tokens are not intended to be available to residents of the United States or certain other restricted territories. More details can be found at https://world.org/tos.

As described further below, this document contains forward-looking estimates and statements regarding the intended actions and objectives of the World Foundation and the World Network, based largely on current expectations and projections about future events for which the outcome is uncertain. It is therefore subject to a number of known and unknown risks, including those described at https://world.org/risks, that could cause the actual outcomes to differ materially from what is expressed or implied herein. Readers are cautioned not to put undue reliance on these future-looking estimates and statements. The content of this document speaks only as of the date thereof.

Nature of the Whitepaper

The Whitepaper and the Website are intended for general informational purposes and community discussion only and do not constitute a prospectus, an offer document, an offer of securities, a solicitation for investment, or any offer to sell any product, item or asset (whether digital or otherwise). Nothing contained in the Whitepaper or the Website is or may be relied upon as a promise, representation or undertaking as to the future performance of World Network. The information herein may not be exhaustive and does not imply any element of a contractual relationship commitment in relation to the acquisition of WLD Token, and no virtual currency or other form of payment is to be accepted on the basis of the Whitepaper or the Website. There is no assurance as to the accuracy or completeness of such information and no representation, warranty or undertaking is or purported to be provided as to the accuracy or completeness of such information. Nothing contained in the Whitepaper or the Website is or may be relied upon as a promise, representation or undertaking as to the future performance of World Network. Any agreement between the Distributor (or any third party) and you, in relation to any sale, purchase, or other distribution or transfer of WLD Token, is to be governed only by the separate terms and conditions of such agreement, and such agreement must be read together with the Whitepaper. Where the Whitepaper or the Website includes information that has been obtained from third party sources, the Foundation, the Distributor, their respective affiliates and/or World Network have not independently verified the accuracy or completion of such information. Further, you acknowledge that circumstances may change and that the Whitepaper or the Website may become outdated as a result; and neither the Foundation nor the Distributor is under any obligation to update or correct this document in connection therewith.

The information set out in the Whitepaper and the Website is for community discussion only and is not legally binding. No person is bound to enter into any contract or binding legal commitment in relation to the acquisition of any WLD token, and no virtual currency or other form of payment is to be accepted on the basis of the Whitepaper or the Website. Any agreement governing the sale or acquisition of WLD tokens shall be governed by a separate set of Terms of Service, available at https://world.org/tos. The Terms of Service must be read together with the Whitepaper and further information available at https://world.org/risks. In the event of any inconsistencies between the Terms of Service and the Whitepaper or the Website, the Terms of Service shall prevail.

Token Features

The native digital cryptographically-secured utility token of World Network (WLD Token) is a transferable representation of attributed functions specified in the protocol/code of World Network, designed to play a major role in the functioning of the ecosystem on World Network, and intended to be used solely as the primary utility and future governance token on the platform. The goal of introducing WLD Token is to provide a convenient and secure mode of payment and settlement between participants who interact within the ecosystem on World Network, and it is not, and not intended to be, a medium of exchange accepted by the public (or a section of the public) as payment for goods or services or for the discharge of a debt; nor is it designed or intended to be used by any person as payment for any goods or services whatsoever that are not exclusively provided by the issue. WLD Token may only be utilized on World Network, and ownership of WLD Token carries no rights, express or implied, other than the right to use WLD Token as a means to enable usage of and interaction within World Network.

Deemed Representations and Warranties

By accessing the Whitepaper or the Website (or any part thereof), you shall be deemed to represent and warrant to the Foundation, the Distributor, their respective affiliates, and World Network as follows:

1. in any decision to receive and/or purchase any WLD Token, you shall not rely on any statement set out in the Whitepaper or the Website;
2. you will and shall at your own expense ensure compliance with all laws, regulatory requirements and restrictions applicable to you (as the case may be);
3. you acknowledge, understand and agree that WLD Token may have no value, there is no guarantee or representation of value or liquidity for WLD Token, and WLD Token is not an investment product including for any speculative investment;
4. WLD tokens may not always be transferable or liquid;
5. WLD tokens may not be exchangeable against any goods or services contemplated in the Whitepaper, especially in case of failure or discontinuation of the project;
6. none of the Foundation, the Distributor, their respective affiliates, and/or World Network members shall be responsible for or liable for the value of WLD Token, the transferability and/or liquidity of WLD Token and/or the availability of any market for WLD Token through third parties or otherwise; and
7. you acknowledge, understand and agree that you are not eligible to purchase any WLD Token if you are a citizen, national, resident (tax or otherwise), domiciliary and/or green card holder of a geographic area or country (i) where it is likely that the sale of WLD Token would be construed as the sale of a security, financial service or investment product and/or (ii) where participation in token sales is prohibited by applicable law, decree, regulation, treaty, or administrative act; and to this effect you agree to provide all such identity verification document when requested in order for the relevant checks to be carried out.

The Foundation disclaims all representations, warranties or undertakings to any entity or person (including without limitation warranties as to the accuracy, completeness, timeliness or reliability of the contents of the Whitepaper or the Website, or any other materials published by the Foundation or the Distributor). To the maximum extent permitted by law, the Foundation, the Distributor, their respective affiliates and service providers shall not be liable for any indirect, special, incidental, consequential or other losses of any kind, in tort, contract or otherwise (including, without limitation, any liability arising from default or negligence on the part of any of them, or any loss of revenue, income or profits, and loss of use or data) arising from the use of the Whitepaper or the Website, or any other materials published, or its contents (including without limitation any errors or omissions) or otherwise arising in connection with the same. Prospective purchasers of the WLD Token should carefully consider and evaluate all risks and uncertainties (including financial and legal risks and uncertainties) associated with the WLD Token sale, the Foundation, the Distributor and World Network.

Disclaimers Relating to the WLD Token

It is expressly highlighted that WLD Token:

1. does not have any tangible or physical manifestation, and does not have any intrinsic value (nor does any person make any representation or give any commitment as to its value), and may lose its value in part or in full;
2. is non-refundable and cannot be exchanged for cash (or its equivalent value in any other virtual currency) or any payment obligation by the Foundation, the Distributor or any of their respective affiliates, and may not always be transferrable or liquid;
3. does not represent or confer on the token holder any right of any form with respect to the Foundation, the Distributor (or any of their respective affiliates), or its revenues or assets, including without limitation any right to receive future dividends, revenue, shares, ownership right or stake, share or security, any voting, distribution, redemption, liquidation, proprietary (including all forms of intellectual property or license rights), right to receive accounts, financial statements or other financial data, the right to requisition or participate in shareholder meetings, the right to nominate a director, or other financial or legal rights or equivalent rights, or intellectual property rights or any other form of participation in or relating to World Network, the Foundation, the Distributor and/or their service providers;
4. does not entitle token holders to any promise of fees, dividends, revenue, profits or investment returns, and are not intended to constitute securities in any relevant jurisdiction;
5. is not intended to represent any rights under a contract for differences or under any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss;
6. may not be exchangeable against the good or service described herein, especially in case of failure or discontinuation of World;
7. is not intended to be a representation of money (including electronic money), security, commodity, bond, debt instrument, unit in a collective investment scheme or any other kind of financial instrument or investment;
8. is not a loan to the Foundation, the Distributor or any of their respective affiliates, is not intended to represent a debt owed by the Foundation, the Distributor or any of their respective affiliates, and there is no expectation of profit; and
9. does not provide the token holder with any ownership or other interest in the Foundation, the Distributor or any of their respective affiliates.

Informational Purposes Only

The project roadmap in the Whitepaper is being shared in order to outline the current status of World as well as some of the plans of World Network and is provided solely for informational purposes and does not constitute any binding commitment. Please do not rely on this information in making purchasing decisions because ultimately, further development, release, and timing of any products, features or functionality remains at the sole discretion of the Foundation, the Distributor or their respective affiliates, and is subject to change. Further, the Whitepaper or the Website may be amended or replaced from time to time. There are no obligations to update the Whitepaper or the Website, or to provide recipients with access to any information beyond what is provided herein.

Regulatory Approval

No regulatory authority has examined or approved, whether formally or informally, of any of the information set out in the Whitepaper or the Website. No such action or assurance has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution or dissemination of the Whitepaper or the Website does not imply that the applicable laws, regulatory requirements or rules have been complied with. World is solely responsible for the content of this Whitepaper. This Whitepaper has not been reviewed or approved by any competent authority in any Member State of the European Union.

Cautionary Note on Forward-Looking Statements

All statements contained herein, statements made in press releases or in any place accessible by the public and oral statements that may be made by the Foundation, the Distributor and/or World Network, may constitute forward-looking statements (including statements regarding intent, belief or current expectations with respect to market conditions, business strategy and plans, financial condition, specific provisions and risk management practices). You are cautioned not to place undue reliance on these forward-looking statements given that these statements involve known and unknown risks, uncertainties and other factors that may cause the actual future results to be materially different from that described by such forward-looking statements, and no independent third party has reviewed the reasonableness of any such statements or assumptions. These forward-looking statements are applicable only as of the date indicated in the Whitepaper, and the Foundation, the Distributor as well as World Network expressly disclaim any responsibility (whether express or implied) to release any revisions to these forward-looking statements to reflect events after such date.

English Language

The Whitepaper and the Website may be translated into a language other than English for reference purpose only and in the event of conflict or ambiguity between the English language version and translated versions of the Whitepaper or the Website, the English language versions shall prevail. You acknowledge that you have read and understood the English language version of the Whitepaper and the Website.