WLFI Proposal: 180-Day Staking Governance, USD1 Deposit Incentive Simultaneously Launched

The crypto company World Liberty Financial (WLFI), under the Trump family, released a new governance proposal on Wednesday, suggesting that token holders must stake WLFI for at least 180 days to participate in governance voting. The aim is to ensure that voting rights are held by “participants with long-term commitment to the protocol,” rather than speculators. Stakers who complete the staking and participate in at least two governance votes during the lock-up period can earn an annual percentage yield (APY) of 2%.

Core Mechanism Design of the Staking Governance Proposal

(Source: WLFI)
The core of this proposal is token locking to select governance participants with long-term commitment. The proposal details the following key design elements:

Key Points of the Staking Governance Proposal

Staking Requirement: To participate in governance voting, lock WLFI tokens for at least 180 days

Annual Percentage Yield (APY): Stakers who complete at least two governance votes during the lock-up period can earn 2% APY

Voting Power Calculation: Voting rights are dynamically calculated based on the amount staked and remaining lock-up time, with longer lock-up periods granting higher weight

Voting Threshold: Each proposal requires at least 1 billion tokens participating in voting and a majority approval

Compatibility with Existing Holdings: Users holding locked tokens can still vote normally, without affecting their current holdings

Super Node Qualification: “Super nodes” holding over 50 million WLFI tokens can access additional features

According to CoinGecko data, WLFI tokens currently have a circulating supply of over 27 billion tokens. The 1 billion token voting threshold accounts for approximately 3.7% of the circulating supply.

USD1 Incentive Strategy and Stablecoin Market Positioning

This proposal also promotes incentives for adopting USD1 stablecoin, extending WLFI’s long-term strategy to popularize USD1.

According to the proposal, users staking WLFI will receive “additional benefits related to USD1 usage”; users depositing USD1 on WLFI’s trading and lending platform WLFI Markets will receive unspecified “incentives” from DeFi protocol Dolomite. This integrated plan links WLFI token staking, USD1 deposits, and DeFi protocols into a complete ecological incentive cycle.

As of Thursday, DeFiLlama data shows the total stablecoin market cap surpassing $309 billion, with Tether USDT leading at over $183 billion (market share 59%), followed by Circle USDC at $75 billion. USD1’s current market cap is $4.7 billion, ranking as the fifth-largest stablecoin globally. While still far behind the top two, WLFI states it will continue to promote adoption through reward programs and institutional platform collaborations.

Three-Phase Launch Plan

If the proposal is approved, WLFI plans to implement it in three phases:

Phase 1: Launch staking rewards and USD1 deposit incentives to build a base of engaged users

Phase 2: Introduce 1:1 conversion functionality to further enhance USD1 liquidity and usability

Phase 3: Open opportunities for super node collaborations and revenue sharing frameworks to attract large holders to deepen ecosystem participation

Frequently Asked Questions

How does WLFI’s 180-day staking requirement differ from typical DeFi staking?

Most DeFi staking focuses on yield incentives with flexible lock-up conditions. WLFI’s proposal emphasizes “governance eligibility”: locking for 180 days is a prerequisite for voting rights, not just for earning rewards. This design aims to filter out short-term speculators and ensure that token holders participating in governance have a higher degree of long-term commitment.

What is the current market position of USD1 in stablecoins?

USD1 currently has a market cap of $4.7 billion, ranking fifth globally among stablecoins, far behind market leaders USDT ($183 billion) and USDC ($75 billion). WLFI’s incentive strategy aims to expand USD1’s use cases within DeFi and gradually narrow the market share gap.

What are the conditions for the proposal to pass?

According to the proposal, at least 1 billion WLFI tokens (about 3.7% of the circulating supply) must participate in voting, and the proposal must receive a majority of “yes” votes. With a circulating supply of over 27 billion tokens, reaching the quorum requires roughly 3.7% of tokens to participate, which is a critical threshold for the proposal’s implementation.