WLFI Proposes Staking System To Boost USD1 and Governance

WLFI News

Trump family-backed crypto venture World Liberty Financial (WLFI) put

a governance overhaul on Wednesday, proposing a token staking mechanism tied to voting rights and a set of incentives designed to drive adoption of its stablecoin, USD1.

Under the proposal, governance participants would be required to lock their WLFI tokens for a minimum of 180 days to gain voting rights. The stated purpose is to ensure that voting power sits with long-term participants rather than short-term holders. Stakers who vote in at least two governance decisions during that lock-up period would earn a 2% annual percentage rate.

Voting power under the new model would be calculated based on both the number of tokens staked and the time remaining in the lock-up. Existing token holders with locked positions would retain their ability to vote as normal under current rules.

The proposal also includes incentives for USD1 usage specifically. Users who stake WLFI tokens would receive additional benefits for depositing USD1 on WLFI Markets, the project's trading and lending platform, with those deposits attracting unspecified incentives from DeFi protocol Dolomite.

Two tiers of large holders are addressed separately. "Nodes," defined as wallets holding at least 10 million WLFI tokens, would gain access to 1:1 conversion of other