World Mobile denies dilution in the value of WMT due to the launch of AyA

This week there was some unrest in the Cardano community surrounding questions about token dilution of the World Mobile WMT token with the launch of the AyA L1 and chain (read the whitepaper). The fear is that the new token could potentially reduce the scarcity, and thus the value, of the existing tokens by splitting the focus of usage and investment between two tokens instead of one.

World Mobile, a company in the telecommunications sector, launched the AyA token in February 2023 as a sidechain, primarily intended to run on each EarthNode within its network. The introduction of AyA has to enhance the utility of the World Mobile Token (WMT) by facilitating broader participation in the network’s economy, especially from EarthNode Operators who play a crucial role in network expansion and service delivery.

Cardano versus World Mobile $AyA L1 and chain

The company operates on the Cardano blockchain, known for its insane stability and 100% uptime, leveraging this technology to enhance the connectivity and inclusiveness of its services. For Cardano the challenge connected with the launch of the AyA L1 and chain will lie in ensuring that the AyA sidechain seamlessly interacts with the main Cardano blockchain without causing fragmentation or inefficiencies in network operations. This integration needs to maintain the security and operational standards of the main blockchain while leveraging its capabilities to support new functionalities introduced by the sidechain.

The implementation of the AyA L1 and chain is designed to complement the Cardano ecosystem by allowing EarthNode operators in the World Mobile network to participate more actively in the sharing economy, hence driving forward World Mobile’s mission to connect the unconnected through innovative blockchain solutions​

The company addressed the unrest via Twitter user Dr. ADA ape who quoted the Twitter account Mr Telecoms who is connected to the World Mobile Group. You can find the tweet below, but we will dissect the Tweet so you will better understand what is being said in there related to the usage and strategic positioning of the cryptocurrencies WMT and AyA within their respective networks and the potential impacts on their values.

No dilution in the value of WMT due to the launch of AyA

The quote in the Tweet, later confirmed by Mr Telecoms clearly states that there will be no dilution in the value of WMT due to the launch of AyA. Instead there will be an increase in the use of WMT so is said. Note that ADA will still be a partner chain.

Update from @MrTelecoms surrounding questions about token dilution of $WMT with the launch of the $AyA L1 and chain:

"There is no dilution in the value of $WMT with $AyA. There will be an INCREASE in use of $WMT. We will be able to surprise the community in the next 8 weeks to… pic.twitter.com/q8RbfFjCKE

— Dr. ADA ape 🌍|| "APE" (Pool) (@TheADAApe) May 4, 2024

Here’s a further detailed breakdown of what the Tweet holds as info in order to better understand what it entails. Basically there are 4 elements you should understand:

1. Token Usage and Value Accrual :
   • WMT: It is mentioned that the use of WMT will increase and that the value of WMT will continue to accrue to WorldMobile. This suggests an expected rise in demand or utility for WMT, which could positively influence its market value.
   • AyA: The tweet explains that AyA will act as the fuel/gas token similar to how ADA (Cardano), ETH (Ethereum), and BNB (Binance Coin) function in their respective networks. This positions AyA as a fundamental component in transaction processing or network operations on its blockchain.
2. Strategic Integration and Synergies :
   • The statement asserts that AyA and WMT are synergistic, indicating that their functions and uses within the ecosystem are designed to complement each other.
   • The necessity for WMT is clear and plays an integral role within the WorldMobile network, this will not only remain but may become more critical.
3. Future Promises and Developments :
   • A specific timeframe is given (next 8 weeks) during which the community will be ‘surprised’ with demonstrations of how WMT’s value will continuously increase. This refers to upcoming announcements, partnerships, and technological developments. World Mobile did say there is a “tier 1” telecom partner coming to the AyA chain, which many believe to be Vodafone. The company is also in talks with the world’s largest telecoms lobbying group, GSMA to make AyA “THE telecom blockchain”.
4. Hyper-bullish. :
   • Now this part is something WMT holders will particularly like. The term “hyper-bullish” is clearly used to describe the overall sentiment or outlook on the developments surrounding WMT and AyA. It remains to be seen of course if this very positive market sentiment and expectations of strong performance or value appreciation will also result in a price jump for the WMT token.

From our point of view the tweet seems to be a strategic communication aimed at reassuring stakeholders about the stability and potential growth in value of WMT amidst the new developments with AyA, and aligning community and market expectations with upcoming plans and the broader strategic vision of the organization.

One thing is sure, if World Mobile becomes a critical player in the Telecom sector than that could mean a very bright future for its WMT token.