Abstract
This proposal introduces a permissionless, performance-based Relayer Node Program that allows independent operators to run WalletConnect relay nodes by staking WCT and earning rewards based on uptime, latency, and reliability.
This will make the relay network decentralized, resilient, and token-driven — converting WCT from a purely governance asset into a core network utility token.
Motivation
Currently, the WalletConnect relay infrastructure — the backbone for wallet–dApp messaging — is maintained by a limited set of operators. While effective, this structure introduces centralization and scalability limits.
As WalletConnect expands across multiple chains and user bases, it needs:
More regional relayers for low-latency global coverage.
Incentivized participation to maintain uptime.
Token utility beyond governance (to sustain long-term growth).
This proposal aims to solve these by opening the network to community-run nodes.
Specification
- Relayer Registry Contract
A smart contract to manage registration of relayer nodes:
Operators stake WCT to join.
Each node publishes:
IP/endpoint metadata
Performance metrics (ping, uptime)
Non-performance or malicious activity can lead to slashing or temporary suspension.
- Performance Oracle
A decentralized or semi-decentralized system that:
Collects latency, uptime, and delivery metrics.
Feeds verified data to the registry contract for score calculation.
Initially, can be run by governance-approved entities; later opened to community verification.
- Reward Mechanism
Monthly reward epochs funded from:
Protocol fees (Relay usage, premium APIs, etc.)
Governance-approved emission pool.
WCT rewards distributed proportional to each node’s performance score.
Optional: bonus multipliers for low-latency regions or new deployments.
- Governance Control
All key parameters — stake size, reward pool, penalty rate, whitelist/blacklist policy — governed by WCT holders.
Governance also approves:
Software versions for relay clients.
Onboarding of performance oracles.
Annual reviews of network decentralization metrics.
- Security & Launch Phases
Phase 1: Testnet launch with limited operators and mock rewards.
Phase 2: Audit + mainnet deployment.
Phase 3: Open permissionless onboarding.
Phase 4: Reward pool activation and live staking.
Rationale
A decentralized relayer layer will:
Strengthen the core reliability of WalletConnect connections.
Make WCT a functional token, not just a governance tool.
Enable regional scalability and censorship resistance.
Foster an ecosystem of community node operators and developers.
This model follows the same proven logic as decentralized validators (Ethereum), indexers (The Graph), or oracles (Chainlink) — but tailored for message relaying and dApp-wallet communication.
Risks & Considerations
Risk Mitigation
Centralization of a few big relayer operators Weight rewards by region, limit per-operator nodes
Sybil attacks Require minimum stake + identity reputation system
Measuring performance fairly Use on-chain oracles + random third-party probes
Security of relayer code Mandatory open-source client + audit before mainnet
Inflation / reward sustainability Tie rewards to protocol revenue or governance-approved emission schedule
Conclusion
This proposal is the next necessary milestone for WCT governance — turning WalletConnect’s relay network into a truly decentralized, incentivized, and self-sustaining system.
By approving this, the community ensures:
Long-term scalability,
Security through diversity,
And real economic utility for WCT.