Since the first batch of WHC has been generated on July 31th, anyone can use the Wormhole system to issue tokens on the BCH blockchain. According to the data of BCH browser Blockabc, there are 168 tokens issued on the BCH main network through Wormhole until now.

Most of these tokens are fixed Tokens. “Fixed” means that the issuer automatically owns all tokens immediately after issuance, which cannot be additionally issued, cannot be burned, and cannot initiate a crowdfunding. However, most tokens in the market based on Ethereum are all generated by crowdfunding. Of course, the Wormhole system can also issue a token with crowdfunding capabilities, that is, a crowdfunding token: After the issuance, the issuer does not own all the tokens, but automatically enters the crowdfunding procedure. When the crowdfunding is finished, the tokens which have not been included automatically goes to the issuer’s address, and cannot be additionally issued or burned.

Crowdfunding token has already taken place in the Wormhole system. Its name is bcext, the first crowdfunding token issued through the Wormhole system.

The bcext Token is created by a user with the address bitcoincash:qq893ghdg697e5t5anh5fqpxwxxhw3akyu9l7wej0q. The crowdfunding started at 11:22:49 on August 3, 2018, and ended at 10:52:30 on August 20, 2018. According to the WHC wallet “https://whcwallet.cash”, the bcext Token exchange rate is WHC:bcext=1:1000.11111111, and the total circulation is 100,000,000.12. Everyone can participate in the crowdfunding of bcext through this wallet.

According to the website information provided at the time the token was created, bcext is a project that has implemented the Bitcoin Cash client using the GO language. On the basis of the progress of its Github coding, the project is currently under development. The developer who created the project was a person named Shuai Qi. He has published several technical articles on jianshu.com.

In addition to issuing this crowdfunding token, the account also issued a fixed Token called WHD.

In the previous days, the Wormhole system has released the its latest version 0.0.6, which has improved the crowdfunding algorithm for crowdfunding tokens. Currently, everyone can use the WHC client to issue any kind of token according to the Wormhole protocol.

Let’s take a look at the announcements on creating a crowdfunding token.

When a crowdfunding token is created, the sender’s address will have a sum of active crowdfunding tokens once the transaction is validated by the Wormhole node. Current crowdfunding only allows participation by using WHC. At this time, the WHC is equivalent to a chip, which acts as ETH. WHC can be obtained by burning BCH or by purchasing on the trading platform.

It is important to note that, an account address can create multiple fixed tokens at the same time, however, an account address is allowed to have only one active crowdfunding token at a given time. This avoids the crowdfunding participants from specifying which crowdfunding to participate in the same issuer’s account. But, any account address can create multiple types of tokens, just like account address we talked before.

When the following situation occurs, crowdfunding will be permanently closed: The first situation is when the Tip block time stamp is greater than or equal to the crowdfunding deadline time; the second one is when it is manually forced by the issuer; the third one is when the crowdfunding fund offering is completed.

Undoubtedly, the same as ETH crowdfunding set up early bird stage in order to encourage people to participate in crowdfunding as early as possible, the crowdfunding token issued through the Wormhole system can also reward early participants by setting up an early bird reward mechanism. This early bird reward will decrease linearly over time when crowdfunding starts, and the early bird incentive will reach to zero when it hits the crowdfunding deadline,.

The percentage of early bird rewards is calculated as follows: ((Crowdfunding deadline — block time of the transaction) / Number of seconds in a week) * Early bird incentives. For example, the ratio of two Tokens is: 1WHC = 100HLT; the early bird reward mechanism is 10%; if you buy 1WHC: The crowdfunding participants who participate in two weeks prior to the crowdfunding deadline will get 20% extra tokens, 120HLT in total; participating in 1.5 weeks prior to the crowdfunding deadline, hence the purchaser will get 15% extra Token, 115HLT in total.

When all the settings are set, the crowdfunding can be initiated. When other accounts initiate transactions to participate in the Token crowdfunding and the transaction is confirmed by the Wormhole agreement, the purchased tokens will immediately be included in the available balance of the participant’s account, and the participant can transfer, sell, or make other uses of the purchased Token. The funds that participated in crowdfunding (WHC) are immediately credited to the available balance in the issuer’s account. The Wormhole client also ensures that the sum of the number of Tokens included in the crowdfunding participants and the number of Tokens in the issuer ‘s account does not exceed the total circulation supplied. When a crowdfunding transaction fails to meet the minimum accuracy of the buyer’s crowdfunding Token, the crowdfunding transaction will fail and the money is returned to the participant.

Now the wormhole WHC is still in its infancy, and the number of tokens issued on this platform is still at a low level. As it evolves, wormhole WHC will provide smart contract services for a variety of applications like the Ethereum platform, which will also provide issuance solution to a variety of tokens on the BCH blockchain.