WLFI plan conditions votes on staking, targets 2% rewards

WLFI plan conditions votes on staking, targets 2% rewards - GNcrypto

World Liberty Financial proposed making WLFI voting conditional on staking unlocked tokens for at least 180 days, with eligible voters targeting 2% annual rewards from the treasury.

World Liberty Financial, a crypto project with close ties to the Trump family, posted a governance proposal on its forum that would require holders of unlocked WLFI to stake their tokens for at least 180 days to gain voting rights. The plan targets roughly 2% annualized rewards for stakers who participate in at least two governance votes during the lock period, with payouts funded by the WLFI treasury.

The forum post states the framework is intended to deepen community participation and shift financial value from intermediaries to longer-term holders.

Under the proposal, only unlocked WLFI would need to be staked to vote; holders of tokens already locked can continue voting under existing rules. Voting power would use a square-root weighting model based on the amount staked and the remaining lock-up period, a design meant to limit outsized influence from large accounts.

Stakers who meet the participation threshold would qualify for a base reward. The proposal describes the incentives as “one of the most significant steps forward in the evolution of WLFI.”

The plan adds a tiered structure. Participants staking at least 10 million WLFI, or roughly $1 million at recent prices, would be labeled “Nodes” and gain access to licensed market makers to convert USDT and USDC into the project’s USD1 stablecoin at a 1:1 rate. Those staking more than 50 million WLFI would be designated “Super Nodes,” with benefits that include priority access to partnership discussions and potential eligibility for economic incentives on approved integrations.

The document links the design to arbitrage seen during a recent expansion of USD1, estimating about 15 basis points per mint-and-sell cycle. “The Node mechanism redirects this value from a small number of intermediaries to long-term ecosystem participants, while simultaneously creating structural demand pressure on competing stablecoins,” the team wrote.

For the measure to pass, the vote would need a quorum of 1 billion eligible WLFI voting tokens and a simple majority. A seven-day voting window will open once the proposal advances to a snapshot vote.

The proposal comes as the project works to more closely connect the WLFI token with the USD1 stablecoin system. USD1 briefly dipped to $0.99 earlier this week before recovering; the team described the decline as a coordinated short and social media attack.

As of this writing, WLFI trades near $0.11, up 2% over the past 24 hours, with a market capitalization of about $3.2 billion, according to coinmarketcap.

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