In a notable development in the cryptocurrency world, Worldcoin, the pioneering project that aims to verify people’s uniqueness and existence through its Operator network, has officially announced a strategic change in its payment policy. Effective October 10, 2023, Worldcoin will cease payments in the USDC stablecoin, instead opting for its native WLD cryptocurrency. This shift has the potential to influence the circulating supply of WLD tokens and subsequently impact their price in the crypto market.

Worldcoin’s WLD cryptocurrency, initially launched as an Ethereum token in late July, made an impressive entry into the crypto markets. Debuting at around $2, it swiftly reached an all-time high of $3.5 on its launch day, only to retract to its initial value of $2 the following day. This trend continued for approximately two weeks until August 7, when a gradual descent began. The cryptocurrency hit its lowest point, trading at just under $1, in mid-September. Subsequently, it climbed back to $1.6 by September 16 and has since maintained stability in the range of $1.2 to $1.8.

However, the recent announcement of the payment transition from USDC to WLD for Worldcoin operators had a limited negative impact on the token’s price. While it briefly dipped below $1.5, it recovered to $1.52. It’s essential to note that this immediate reaction does not rule out the possibility of more significant repercussions in the long term.

Worldcoin Operators, who operate Orbs and custom imaging devices developed by Tools for Humanity (TFH) for the Worldcoin project, have been instrumental in verifying people’s uniqueness and existence. In the early stages of the project, these Operators received cash rewards in the USDC stablecoin. However, the transition period for USDC payments has come to an end, and going forward, these rewards will be disbursed in WLD.

The official statement from Worldcoin on this change reads, “As of October 10, 2023, the Operator rewards paid out in WLD are also contributing to the growing circulating supply of WLD.”

This shift in payment policy has a significant bearing on the circulating supply of WLD tokens. Worldcoin’s real-time chart reveals a steady increase in the supply of WLD tokens. Starting at just over 101 million tokens, it rapidly grew to 119 million. By mid-August, the supply reached 123 million, which then inched up to 127 million by the end of August, 130 million by mid-September, and 134 million on October 10. While the growth has slowed since then, it appears poised for further expansion.

It’s interesting to observe that the decline in the price of WLD tokens to below $2 closely coincided with the substantial creation of tokens up to August 7. Likewise, the drop to $1 aligned with the surge in the supply of tokens in circulation, surpassing 130 million. As the phase of replacing USDC payments with WLD token payments progresses through November, it is possible that the circulating supply may experience a significant surge.

However, a noteworthy development is set to occur on October 24, 2023, where the circulating supply will witness a reduction of up to 25 million WLD due to the conclusion of the first WLD token loans. Despite this, it’s crucial to acknowledge that the number of WLD tokens distributed as rewards to operators has been relatively modest until now.

Considering the broader picture, the current supply of WLD tokens in circulation represents only slightly over 1.3% of the total supply of 10 billion tokens. Among the 134 million WLD tokens released thus far, 100 million were provided as loans to market makers, with 25 million slated for return. The remaining 34 million tokens have been distributed to users who underwent iris-scan identity verification and Orb operators.

While the immediate future appears promising for WLD tokens, uncertainties may linger in the medium to long term. The Worldcoin project’s present status seems to be a work in progress, whereas its full potential is expected to manifest in the long run. Given the variability in the circulating supply, the price trajectory of WLD tokens may not necessarily mirror that of the Worldcoin project. After all, WLD primarily serves as a means of exchange rather than an investment in the project itself.

As Worldcoin navigates this significant transition from USDC to WLD payments, the crypto community watches with anticipation and curiosity. The impact of this decision on the circulating supply and price of WLD tokens remains to be seen, but it undoubtedly adds a layer of complexity and intrigue to the ever-evolving cryptocurrency landscape.