The post Wormhole launches reserve tying protocol revenue to token appeared on BitcoinEthereumNews.com. Wormhole is changing how its W token works by creating a new reserve designed to hold value for the long term. Announced on Wednesday, the Wormhole Reserve will collect onchain and offchain revenues and other value generated across the protocol and its applications (including Portal) and accumulate them into W, locking the tokens within the reserve. The reserve is part of a broader update called W 2.0. Other changes include a 4% targeted base yield for tokenholders who stake and take part in governance. While staking rewards will vary, Wormhole said active users of ecosystem apps can earn boosted yields through features like Portal Earn. The team stressed that no new tokens are being minted; rewards come from existing supply and protocol revenues, keeping the cap fixed at 10 billion. Wormhole is also overhauling its token release schedule. Instead of releasing large amounts of W at once under the old “cliff” model, the network will shift to steady, bi-weekly unlocks starting October 3, 2025. The aim is to avoid sharp periods of selling pressure and create a more predictable environment for investors. Lockups for some groups, including validators and investors, will extend an additional six months, until October 2028. Core contributor tokens remain under longer contractual time locks. Wormhole launched in 2020 as a cross-chain bridge and now connects more than 40 blockchains. The W token powers governance and staking, with a capped supply of 10 billion. By redirecting fees and revenues into the new reserve, Wormhole is betting that its token can maintain value as demand for moving assets and data between chains grows. This is a developing story. This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication. Get the news in your inbox. Explore Blockworks newsletters: Source: https://blockworks.co/news/wormhole-launches-reserveThe post Wormhole launches reserve tying protocol revenue to token appeared on BitcoinEthereumNews.com. Wormhole is changing how its W token works by creating a new reserve designed to hold value for the long term. Announced on Wednesday, the Wormhole Reserve will collect onchain and offchain revenues and other value generated across the protocol and its applications (including Portal) and accumulate them into W, locking the tokens within the reserve. The reserve is part of a broader update called W 2.0. Other changes include a 4% targeted base yield for tokenholders who stake and take part in governance. While staking rewards will vary, Wormhole said active users of ecosystem apps can earn boosted yields through features like Portal Earn. The team stressed that no new tokens are being minted; rewards come from existing supply and protocol revenues, keeping the cap fixed at 10 billion. Wormhole is also overhauling its token release schedule. Instead of releasing large amounts of W at once under the old “cliff” model, the network will shift to steady, bi-weekly unlocks starting October 3, 2025. The aim is to avoid sharp periods of selling pressure and create a more predictable environment for investors. Lockups for some groups, including validators and investors, will extend an additional six months, until October 2028. Core contributor tokens remain under longer contractual time locks. Wormhole launched in 2020 as a cross-chain bridge and now connects more than 40 blockchains. The W token powers governance and staking, with a capped supply of 10 billion. By redirecting fees and revenues into the new reserve, Wormhole is betting that its token can maintain value as demand for moving assets and data between chains grows. This is a developing story. This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication. Get the news in your inbox. Explore Blockworks newsletters: Source: https://blockworks.co/news/wormhole-launches-reserve