WLFI Launches Governance Proposal to Enable Token Staking

World Liberty Financial (WLFI) has introduced a new governance proposal. That could significantly change how its community participates in decision making. The proposal, titled the WLFI Governance Staking System, went live on the project’s official forum. It asks token holders to vote on whether staking should become mandatory for unlocked WLFI tokens to participate in governance. 

The Trump family-linked DeFi project says the move aims to reward committed users and strengthen long-term alignment. Voting is currently open for seven days and requires a quorum of 1 billion tokens with a simple majority to pass.

Proposal Overview and Core Goals

According to the proposal, the main objective is to push more active and long-term governance participation. WLFI wants voting power to sit with users who are willing to lock their tokens rather than short-term holders. Under the plan, unlocked token holders must stake to vote. While locked presale tokens can still vote without staking.

The system also introduces participation rewards and a new tiered structure for highly committed holders. WLFI argues the design could redirect value that normally goes to intermediaries back to community members. The team also believes the changes may strengthen the ecosystem around its USD1 stablecoin strategy.

Key Mechanics and Requirements

If approved, any holder of unlocked WLFI can stake tokens with a minimum lock-up of 180 days. However, users who choose not to stake will lose governance voting rights. Voting power will depend on the amount staked and the remaining lock-up time. The protocol will use a square root weighting formula to reduce excessive concentration of power.

Stakers may earn a base reward of roughly 2% APR in WLFI tokens. However, the reward is not automatic. Users must participate in at least two governance votes during the lock period to qualify. The reward rate will come from the WLFI treasury and may change over time. In addition, only stakers will receive certain USD1 deposit incentives through WLFI Markets powered by Dolomite.

Node and Super Node Incentives

The proposal also introduces higher-tier roles called Nodes and Super Nodes. A Node requires staking at least 10 million WLFI. It is roughly valued at $1 million at current prices. These participants gain access to subsidized 1:1 stablecoin conversions into USD1 through partner market makers. The program will be limited to the first 1,000 qualifying Nodes and will require KYC verification.

Meanwhile, Super Nodes must stake at least 50 million WLFI. These participants receive all Node benefits plus direct access to the WLFI team and potential partnership incentives. However, WLFI reserves the right to modify or discontinue subsidies at any time.

Community Reaction and What Comes Next

Early community response appears mixed. Some supporters say the model could improve governance quality and reward loyal holders. But many critics argue the roughly 2% APR is too low compared with other DeFi options. Others also question why locked presale tokens keep voting rights without staking benefits.

If the proposal passes, implementation will roll out in three phases. It will starting with basic staking, followed by Node activation and later Super Node features. For now, the vote will determine whether WLFI’s governance model moves toward a more stake driven future.

The post WLFI Launches Governance Proposal to Enable Token Staking appeared first on Coinfomania.