Trump-Linked Crypto Project WLFI Moves to Tie Voting to Staking

World Liberty Financial has unveiled a sweeping proposal to reshape its ecosystem through the launch of the WLFI Governance Staking System, a move designed to prioritize long-term participation over short-term trading activity.

The initiative would require token holders to stake their WLFI in order to gain voting rights, effectively tying governance influence to sustained commitment.

The proposal is now live on the project’s official forum, where token holders have a seven-day window to vote. If approved, the changes would mark a structural shift in how power, incentives, and capital flows operate within the protocol.

Governance Access Linked to Staking

Under the new framework, holders of unlocked WLFI tokens must stake them to participate in governance decisions. All staked tokens will be subject to a mandatory minimum lock-up period of 180 days, reinforcing the project’s emphasis on long-term alignment.

Voting power will be calculated using a square root formula that considers both the amount of tokens staked and the remaining lock-up duration. This structure is designed to reduce the influence of large token holders and discourage governance dominance by a small group of participants.

For a proposal to pass, at least 1 billion eligible WLFI tokens must participate, with approval requiring a simple majority.

Tiered Participation Model Introduced

The overhaul also introduces a tiered system aimed at rewarding deeper ecosystem involvement.

Base stakers who participate in at least two governance votes during their lock-up period will qualify for roughly 2 percent annualized rewards. These incentives will be funded directly from the WLFI treasury rather than protocol revenue.

Participants staking 10 million WLFI tokens can qualify as Nodes. This tier provides access to over-the-counter 1:1 conversions of USDT or USDC into the protocol’s USD1 stablecoin through licensed market makers. Node operators are expected to capture around 10 to 15 basis points in arbitrage value per cycle.

The highest tier, Super Nodes, requires 50 million WLFI tokens. In addition to Node benefits, these participants receive direct access to the WLF team for priority business partnership discussions.

Focus on USD1 Expansion

A central objective of the proposal is to accelerate adoption of the protocol’s stablecoin, USD1. Only staking participants will receive incentives tied to USD1 deposits made through WLFI Markets, including integrations with lending platforms such as Dolomite.

The project aims to redirect arbitrage opportunities that were previously captured by external market makers back to long-term community participants, strengthening internal capital efficiency.

USD1 Backed by U.S. Treasuries and Cash

USD1 is fully backed by high-quality liquid assets, including short-term U.S. Treasury bills and cash equivalents. Reserves are custodied by BitGo, reinforcing the asset’s institutional-grade positioning.

If the proposal passes, the rollout will occur in three phases. The first stage will activate governance staking with the 180-day lock-up requirement. The second phase integrates Node participation, while the final phase expands utility through USD1 deposits and additional features such as World Swap.

The outcome of the current vote will determine whether World Liberty Financial moves forward with what could become one of its most significant structural transformations to date.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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