Wormhole Token Spikes 6.3% Amid Governance Overhaul

- Wormhole introduces sweeping W token updates, boosting market interest. - Changes focus on staking rewards, liquidity, and governance empowerment. On September 17, 2025, Cointelegraph reported that Wormhole unveiled sweeping changes to its W tokenomics, driving a 6.3% price surge and renewed market buzz. The comprehensive overhaul introduces a W reserve, improved staking mechanisms, and a revised token unlock schedule, all of which aim to align incentives, enhance adoption, and streamline governance. Protocol fees and revenue now fund the newly introduced W reserve to ensure sustainable growth. In addition, Wormhole revised staking rewards to include a base yield of 4% and added incentives for active participants. To better manage liquidity and reduce volatility, the protocol also shifted from large annual unlocks to a biweekly schedule. As a result, these measures are designed to keep locked tokens within the ecosystem, fostering long-term growth and encouraging governance activity. Staked W tokens now play a central role in governance, as Wormhole’s framework ties voting power directly to them. According to Cointelegraph on September 17, users have staked $45 million worth of W. Notably, Dan Reecer, co-founder of the Wormhole Foundation, commands the largest voting power at 25.1%. Wormhole’s key role in blockchain interoperability reinforces the significance of these updates. The protocol enables seamless asset transfers across multiple blockchains, a crucial function for deploying stablecoins and real-world assets (RWAs). Competing with platforms like LayerZero, Chainlink, and Axelar, Wormhole remains a key player in this rapidly expanding market. According to CoinMarketCap on September 17, Wormhole (W) was trading at $0.095 as of 19:14 UTC. This price also marks a 7.837% spike in its 24-hour trading volume.