Question 1

What is WELL?

Accepted Answer

WELL is Moonwell's native governance token, used to enable token holders to participate in protocol-level governance. It represents a right to participate in governance processes, rather than equity in the Moonwell company, a claim to dividends, or an instrument redeemable at a fixed price. Moonwell designed WELL as an xERC20 token that can be used across multiple networks; therefore, holders can participate in governance, delegation, and security-module-related activities across networks around the same token. Whether the token has these functions still depends on whether the relevant network and protocol module provide them.

Question 2

What can holders do with WELL?

Accepted Answer

The core use of holding WELL is participation in governance through Moonwell Improvement Proposals (MIPs). Holders can propose or vote on proposals related to protocol development themselves, or delegate voting power to representatives; governance outcomes express the community's views on matters such as protocol rules, upgrades, and resource management. Accordingly, WELL's governance role does not automatically generate a fixed return: it first grants or carries voting power, which is then exercised by the holder or a delegated representative through the voting process for specific proposals. The amount held or delegated affects the amount of voting power available, but does not guarantee any proposal outcome or economic return.

Question 3

Can WELL voting power be delegated?

Accepted Answer

Yes. WELL holders can delegate their voting power to an address or representative they trust, allowing that representative to use the corresponding voting power in Moonwell governance votes. Delegation addresses who participates in voting; it does not transfer token ownership to the representative. This arrangement allows holders who do not wish to study each MIP individually to still participate in governance: holders retain WELL, while representatives vote using the voting power delegated to them. Before delegating, holders should understand a representative's governance positions, because that representative's votes affect how delegated voting power is expressed in proposals.

Question 4

What is the purpose of staking WELL in the security module?

Accepted Answer

WELL can be staked in Moonwell's security module to support protocol security. This mechanism connects WELL staked by participants with the protocol's security arrangements; stakers are choosing to participate in the security module, rather than merely depositing tokens in an ordinary wallet. Moonwell lists Base, OP Mainnet, and Moonbeam as networks supported by the security module. Participants need to confirm the rules of their chosen network and module first, because the specific conditions for staking, unstaking, and incentives are determined by the relevant module; security-module incentives should not be understood as unconditional or fixed return commitments.

Question 5

Why does WELL support multichain use?

Accepted Answer

WELL uses the xERC20 standard so that the same token can support multichain interoperability and unified governance, rather than fragmenting governance activity on each chain into unrelated token systems. Moonwell currently lists Base, OP Mainnet, and Moonbeam as WELL networks. For holders, the practical implication of multichain support is that, before using governance, delegation, or the security module, they need to confirm that their network matches the intended function. Deprecated Wormhole WELL on Base should not be confused with the current xERC20 WELL.

Question 6

What are WELL's supply and initial allocation?

Accepted Answer

WELL has a total supply of 5 billion tokens. This figure represents the total-supply definition in the token's design; it is not equivalent to the quantity circulating, unlocked, or immediately tradable at a particular point in time. In Moonwell's disclosed initial allocation, ecosystem development accounts for 49.63%, early purchasers 30.37%, and contributors 20%, totaling 100%. These percentages indicate how the initial supply was allocated among different categories; by themselves, they cannot establish current circulating supply, remaining locked amounts for each category, or the actual pace of future releases.

Question 7

What can initial allocation percentages show, and what can they not show?

Accepted Answer

The “ecosystem development” portion of the initial allocation represents a supply category reserved by Moonwell for ecosystem-related uses; “early purchasers” and “contributors” are the other two initial-allocation categories. The percentages for the three categories describe the initial allocation structure, not a promise of future returns to holders. To assess the actual effect of a supply category on the number of tokens tradable in the market, it is not enough to look only at allocation percentages. It is also necessary to distinguish whether tokens have unlocked, entered circulation, and actually been sold by holders. Existing transparency materials disclose the initial categories and percentages, but that allocation table alone cannot answer these subsequent-status questions.

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