What is WalletConnect (Reown) and when is the token airdrop?

What is WalletConnect?

WalletConnect is an open-source protocol that provides secure connections to decentralised applications (dapps) and streamlines interaction with smart contracts.

The solution significantly reduces phishing and data-leak risks inherent in traditional browser-based connection methods. A user can quickly and securely connect to a dapp over an encrypted link by simply scanning a QR code or following a deep link.

The protocol also supports push notifications, promptly alerting users to incoming transactions. 

WalletConnect connections use end-to-end encryption and the Transport Layer Security cryptographic protocol.

How has WalletConnect evolved?

The project was created by Pedro Gomes in 2018. Since then it has gained popularity, providing seamless connectivity to the DeFi ecosystem for users worldwide.

According to CoinGecko, the protocol interacts with more than 6,000 dapps across 150 blockchains. No fewer than 600 crypto wallets have integrated WalletConnect, which is used by about 4m people monthly, the team says. 

With the rapid rise of decentralised finance, NFTs and other corners of the crypto industry, the solution has become an increasingly important tool for secure user interaction with Web3. Many popular wallets such as MetaMask, Trust Wallet and Rainbow have integrated the protocol, making it a standard for dapp connectivity.

In 2024 WalletConnect Inc. rebranded to Reown. The company now presents itself as “user-experience-focused”, offering the AppKit and WalletKit toolkits to simplify integration of decentralised applications with wallets, making them easier and safer to use.

The same year saw the creation of the non-profit WalletConnect Foundation, focused on “building and supporting a decentralised, permissionless ecosystem”.

After three funding rounds the project raised a total of $24.75m, according to CryptoRank. Investors include 1kx, Union Square Ventures, Coinbase Ventures, Circle, HashKey Capital and ConsenSys.

What are AppKit and WalletKit?

AppKit is a universal toolkit for application developers, making it easy to build secure products for Web3. It includes onboarding, payments, notifications and other interaction features, enabling smooth integration and broad user access across different blockchains.

WalletKit is a suite of tools for building crypto wallets. It provides developers with simplified authentication, notifications and anti-phishing functionality, ensuring secure and convenient connections to thousands of dapps.

How to connect to dapps with WalletConnect and a mobile wallet

To demonstrate the process with WalletConnect, we use the non-custodial exchange Uniswap, which supports multiple networks. 

Open the platform’s website on desktop and click Connect in the top-right corner.

From the available options, choose WalletConnect.

A QR code will be generated. In your mobile wallet app (for example, Trust Wallet) select the appropriate scanner.

Alternatively, tap the settings gear in the wallet interface, then select WalletConnect. After that, tap Add new connection. 

When the scanner opens, align it with the QR code on the other device to initiate the connection. 

A request will then appear; approve it to interact with the dapp.

Your wallet will then connect to the platform. It will receive requests to sign transactions.

In the WalletConnect section of the mobile app you can manage active connections, end the current session or start a new one.

The connection will automatically terminate after a period of inactivity.

How to connect to dapps with WalletConnect and a desktop wallet

The process is largely similar to the above:

• go to the platform’s website;
• click Connect Wallet;
• select WalletConnect;
• a QR code is generated;
• in the Desktop section choose your wallet (to see all supported apps, click View All).

After selecting the relevant app, confirm the connection request.

The desktop wallet will then connect to the platform.

When is the WalletConnect airdrop?

On 17 September the team announced the Connect Token (WCT), the native token of the WalletConnect Network. The latter, according to the developers, is a “user-experience-oriented ecosystem”.

“As the network becomes increasingly decentralised, WCT will play a key role in supporting the ecosystem,” the WalletConnect team said.

The token will initially operate on the L2 solution Optimism. On 19 September the project integrated with the Superchain ecosystem.

Welcome @WalletConnect and its builders to the Superchain Ecosystem ? https://t.co/ruYPXH0rt2

— Optimism (@Optimism) September 19, 2024

“WCT marks an important milestone in WalletConnect’s decentralisation roadmap and will be the engine of its economic and governance structure,” the developers noted.

Registration for the distribution opened on 24 September; eligibility “is based on use of WalletConnect”.

The initial supply will be capped at 1bn coins. Of these, 18.5% (185m) will be distributed during the first airdrop season.

Recipients include end users of WalletConnect who have interacted with wallets, applications, nodes and SDKs, as well as “communities that have contributed to the project’s development”.

To take part, users must register by connecting a wallet, linking a GitHub account and providing an email address, said Reown head Jess Houlgrave.

The first distribution season will end on 11 October.

“WCT will be distributed over multiple airdrop seasons, starting at the end of 2024. Each stage is designed to reward both users and developers for their contributions to the WalletConnect network,” the project’s blog states.

Initially, WCT will be non-transferable to “ensure a focus on network functionality, stability and ecosystem development”. Transfers may become available later following a community vote. According to Houlgrave, full functionality is expected to be enabled roughly next year.

Development of the protocol and ecosystem will be supported by the WalletConnect Foundation. Consensys, Kiln, Ledger, Luga Nodes, 1kx, Figment and Sensei Nodes will join as third-party node operators.

The WCT token can be used for staking, as well as in on-chain votes on ecosystem development.