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- WLFI mandates 180-day staking to unlock governance voting rights
- Square root model reshapes voting power and limits dominance
- Node tiers unlock USD1 access and treasury-backed rewards
World Liberty Financial, a crypto project tied to the family of US President Donald Trump, has unveiled a governance proposal that would require token holders to commit capital before gaining influence. The shift brings the voting rights directly linked to the activity of staking, transforming the interaction of WLFI participants with protocol choices.
The proposal describes structural reforms that will bring WLFI closer to the USD1 stablecoin ecosystem. Moreover, it proposes a model of graded participation that will provide greater privileges to bigger stakeholders. The project comes as the solution to making the token utility more closely tied to governance control.
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180-Day Staking Rule Tied to Voting Power and Rewards
According to the proposal, to obtain access to governance, unlocked WLFI tokens have to be staked for at least 180 days. Nevertheless, token holders who possess locked tokens are allowed to vote without any further stakes. According to the team, the goal is to enhance the engagement of the community and match the incentives to the long-term holders.
The weighting model of voting would be based on a square root. In this formula, the value used is the number of WLFI deposited and the time it has been locked up. Consequently, the system is supposed to minimize the unnecessary concentration of voting power in the hands of great token holders and compensate for significant participation.
Moreover, the suggestion brings about rewards associated with governance. Those stakers who vote in at least two governance votes within their lock period would be rewarded with a base yield that is aimed at 2% per annum. The WLFI treasury would finance these incentives. According to the team, the reward structure was a significant achievement in the evolution of the governance of the token.
WLFI was trading at $0.11 following an increase of 0.16 percent in the last 24 hours. It has a market capitalization of $3.2 billion currently.
Tiered Node Structure Expands Stablecoin Access
On top of the governance dynamics, the proposal sets forth levels of stakes and privileges that unlock other privileges. Users who stake 10 million WLFI and above (approximately 1 million) would become Nodes. These would allow these participants to access licensed market makers and an opportunity to exchange USDT and USDC into USD1 at a ratio of 1:1.
Stakers who pass 50M WLFI would become a Super Node. This level consists of a priority partnership with the project team and possible economic incentives regarding accepted integrations.
The plan also indicates that the arbitrage value created during the USD1 expansion of 15 basis points per mint sell cycle will be transferred to the long-term holders of WLFI. Passage during a seven-day snapshot vote takes 1 billion eligible WLFI voting tokens with a simple majority. Recently, USD1 dropped to $0.99707 due to volatility, which the team referred to as organized shorting and pressure on social media.
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