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World Liberty Financial Proposes 180-Day Staking Rule to Reshape WLFI Governance

Highlights:

  • WLFI requires staking for unlocked holders to participate in governance voting.
  • The WLFI governance uses square root weighting to limit whale dominance in voting.
  • Node and Supernode tiers will link long-term staking to USD1 access and rewards.

World Liberty Financial has presented a proposal that would alter the way the token holders participate during decision-making. The proposal focuses on staking requirements, voting power adjustments, and long-term participation incentives. It directly influences the way unlocked WLFI holders take part in governance.

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The plan requires participants with unlocked tokens to have their tokens staked for at least 6 months to be eligible to participate in the governance vote. The rule sets a minimum commitment period for participation. Members who have their token already locked can continue voting without having to stake their tokens. The proposal separates rights based on token status.

The team would apply a square root weighting formula to determine voting power. The model considers the amount staked. It also factors in the remaining lockup period. Larger holders still carry weight, but the structure limits linear dominance.

Participants who vote at least twice during the lockup period would earn a 2% annual yield. The WLFI treasury would fund this payout. The yield does not fluctuate with market conditions. The proposal requires one billion voting tokens to reach a quorum. Once the proposal advances to its final stage, the team will open a seven-day voting window.

Tiered Participation Connects Token Lockups to USD1 Access and Incentives

The proposal introduces structured participation tiers. WLFI members who stake at least 10 million WLFI are eligible for the Node status. The status grants expanded access inside the ecosystem. Those who qualify for the status would gain access to market makers who are licensed in the market, and they could convert Tether’s USDT and Circle’s USDC into USD1 at a 1:1 ratio. They would also access direct fiat off ramps.

Holders who stake more than 50 million WLFI would qualify for Supernode status and would be a priority during the access to partnership. They could also gain economic incentives tied to approved integrations. The team estimated that recent USD1 arbitrage reached up to 15 basis points per mint-and-redeem cycle. The proposal would redirect that margin toward long-term WLFI holders. The structure shifts internal value distribution.

WLFI Markets would offer USD1 deposit incentives. The DeFi protocol Dolomite would enable extra incentives to qualified users. The implementation would be in three phases. The initial stage would introduce staking incentives and deposit bonuses. The second step would enable the 1:1 conversion option. The last stage would add access to partnerships and a share of revenue to Supernodes.

WLFI Governance and the Push to Strengthen Stability During USD1 Volatility

USD1 dropped to $0.99707, and then it stabilized. The team blamed the collapse on coordinated short selling and social media pressure. The broader stablecoin market now exceeds $309 billion, according to DefiLlama. USDT leads with more than $183 billion and a 59% share. USDC follows with about $75 billion. USD1 ranks as the fifth-largest stablecoin with a market capitalization near $4.7 billion.

At the same time, World Liberty Financial announced plans to enter the global payments market. The company unveiled World Swap, a platform for foreign exchange and remittance transfers. The service focuses on cross-border transfers. It aims to reduce fees charged by traditional providers.

In addition, WLFI expanded its stablecoin strategy in the United States. WLTC Holdings LLC applied for a bank license with the OCC. If regulators approve the application, the institution would rebrand to World Liberty Trust Company.

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