World Liberty Financial (WLFI), a crypto company backed by the Trump family, has unveiled a governance proposal requiring long-term staking to access voting rights, while strengthening incentives around its USD1 stablecoin. The initiative aims to concentrate decision-making power in the hands of the most engaged participants and expand USD1's role within the ecosystem.
In brief
- A 180-day staking is required to access governance voting rights.
- Stakers earn 2% APR by participating in two votes during the lockout period.
- USD1 incentives are growing through DeFi deposits and integrations.
- Node holders benefit from 1:1 conversion and fiat egress solutions.
WLFI targets long-term holders with governance staking and USD1 rewards
Under the proposal, token holders will have to stake their WLFI for at least 180 days before being able to vote on governance decisions. The objective is to limit the influence of short-term players and align the protocol's decisions with the interests of holders in the long term.
Stakers who participate in at least two governance votes during the lock-up period will benefit from an annual yield (APR) of 2%. The voting weight will be adjusted based on the number of WLFI staked and the remaining duration of the lock. The tokens nevertheless remain eligible for voting throughout the blocking period.
The device also combines staking participation with expanded usage of USD1 in WLFI markets as well as in external DeFi integrations. Key elements include:
- A minimum staking period of 180 days to activate voting rights.
- A 2% return for stakers participating in at least two votes.
- Enhanced incentives for USD1 deposits on WLFI Markets, backed by the DeFi Dolomite protocol.
- Progressive benefits for large holders, including stablecoin conversion services.
Wallets holding at least 10 million WLFI tokens, called “Nodes,” will have access to providers enabling 1:1 conversions of major stablecoins like USDC and USDT to USD1, as well as fiat exit options. “Super Nodes,” defined as holders of more than 50 million tokens, will benefit from similar access and may also participate in a future revenue sharing mechanism.
Three-phase rollout planned as USD1 evolves in concentrated stablecoin market
Approval of the governance proposal requires the participation of at least 1 billion voting tokens, with a simple majority to be validated. With over 27 billion WLFIs in circulation, this quorum represents a significant level of engagement.
If approved, implementation will take place in three phases. The first will enable staking rewards and USD1 deposit incentives. The second will introduce conversion services. The final phase will expand strategic partnerships and establish revenue sharing mechanisms for Super Nodes.
The proposal comes in a stablecoin market highly concentrated. According to DefiLlama, the total capitalization exceeds $309 billion.
USDT dominates with around $183 billion, or almost 59% of the market, while USDC accounts for around $75 billion. With a capitalization of approximately 4.7 billion, USD1 ranks fifth in the sector. It remains significantly smaller than the two leaders, but is nevertheless positioned at the top of the ranking.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
