TLDR
- WLFI proposes 180 day staking for unlocked tokens to gain voting rights.
- Stakers can earn 2% APR if they vote twice during the lock period.
- Node tier starts at 10 million WLFI with USD1 conversion access.
- The proposal requires 1 billion WLFI token quorum and simple majority.
World Liberty Financial has proposed a new staking focused governance system for WLFI holders. The plan would require holders to stake unlocked tokens to participate in governance voting. The proposal was published on the WLFI governance forum and will move to a Snapshot vote.
The system aims to increase participation in governance and connect WLFI more closely with the USD1 stablecoin ecosystem. The proposal introduces staking requirements, tiered rewards, and structured access to conversion and partnership opportunities.
Staking Requirement for Governance Voting
Under the proposal, holders of unlocked WLFI must stake tokens for at least 180 days to gain voting rights, while locked token holders can vote without staking. The team said this approach supports long term alignment. Voting power would use a square root model based on staked amount and remaining lock period to limit concentration and maintain proportional influence.
Stakers must participate in at least two governance votes during the lock period to receive rewards. Eligible participants would earn a base staking reward with a target annual percentage rate of about 2%. The rewards would be paid from the WLFI treasury. The proposal states that the reward rate will be determined at the discretion of WLFI. It is not tied to revenue or operational metrics.
Governance rights would remain non transferable and would adjust as the lock period declines. The proposal requires a quorum of 1 billion eligible WLFI voting tokens. A simple majority of votes cast, excluding abstentions, would be needed for approval. The voting period would last seven days once the Snapshot vote begins.
Tiered Node Structure and USD1 Access
The governance system introduces tiered participation levels based on staking size. Participants who stake at least 10 million WLFI would qualify as Nodes. At current prices, that amount is valued at about $1 million. Nodes would receive access to licensed market makers that support stablecoin conversions.
These providers would allow conversion of USDT, USDC, and other supported stablecoins into USD1 at a 1 to 1 rate. They would also support off ramp services into fiat currency. WLFI said it would subsidize market makers to help maintain 1 to 1 parity. The proposal states that this approach redirects arbitrage value toward long term ecosystem participants. Nodes would need to complete standard KYC and onboarding procedures.
An additional governance token reward would be tied to USDT to USD1 conversion volume and limited to the first 1,000 Nodes, with settlements every six months. Non staking participants would not receive USD1 deposit incentives. The proposal follows recent USD1 volatility, when it traded at $0.99707, which the team described as a coordinated short and social media attack.
Super Nodes and Partnership Access
A higher tier called Super Nodes would apply to participants staking at least 50 million WLFI. This amount is valued at about $5 million at current prices. Super Nodes would receive all Node privileges. In addition, Super Nodes would gain guaranteed direct access to the WLFI team for partnership discussions.
The proposal states that WLFI receives more partnership inquiries than it can engage with productively. Super Nodes may also qualify for additional economic incentives tied to approved integrations. These benefits would be subject to compliance review, due diligence, and commercial agreements.
Super Node status would not guarantee a partnership. If approved, the rollout would occur in three phases. The first phase would activate staking rewards and USD1 deposit incentives. The second phase would enable Node conversion access. The third phase would introduce Super Node partnership frameworks.
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