World Liberty Financial (WLFI) has proposed a staking-based governance proposal that links voting rights to a 180-day token lock-up and introduces tiered benefits tied to a USD1 stablecoin.
Why it matters:
- Unlocked WLFI holders who do not stake their tokens will lose the right to vote on governance proposals. Locked token holders remain eligible to vote.
- Stakers earn a target annual percentage rate (APR) of up to 2% on WLFI treasury. However, this only applies if you actively participate in voting.
- The proposal aims to increase structural demand for USD1 by redirecting arbitrage profits from institutional intermediaries to long-term ecosystem participants.
Details:
- The “node” tier requires staking 10 million WLFI. Nodes have access to licensed market makers that offer 1:1 USDT and USDC to USD1 over-the-counter (OTC) conversions, subject to KYC.
- The first 1,000 nodes will also receive an additional governance token reward linked to USD1 conversion volume.
- The “Super Node” tier requires 50 million WLFI staking. Supernodes are guaranteed access to the WLFI team for partnership discussions and potential economic incentives.
- Voting rights are weighted according to stake size and lock-up period according to the governance proposal.
- The proposal requires a quorum of 1 billion eligible WLFI tokens, determined through a 7-day snapshot vote.
- According to CoinGecko, WLFI is up 2.3% in the last 24 hours.
Big picture:
- The offering comes amid a broader market recovery, with WLFI’s price rally tracking a broader altcoin rally.
- A tiered staking model that provides OTC convertible access signals is what WLFI is working on to boost USD1 adoption.
- The governance quorum requirement of 1 billion tokens sets a high bar for community participation.
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