World Liberty Financial (WLFI) has unveiled a comprehensive governance overhaul that links voting power directly to long-term token lockups to curb short-term speculation.
Under a newly published governance proposal, holders of unlocked WLFI tokens will be required to stake their holdings for a specified period to participate in protocol voting. The initiative effectively ties governance influence to long-term capital commitment rather than simple token ownership.
People will receive voting power and rewards for holding tokens longer
World Liberty aims to secure stable prices for the token’s future, so the platform will tie voting power and rewards to long-term token lockups. This new system will support price stability if demand remains steady or continues to grow as the market’s liquid supply shrinks. To achieve this, holders of unlocked WLFI must stake their tokens for at least 6 months before they can vote, and they cannot sell or transfer them during that period.
The model aims to prevent large wallets from taking over all decisions, so large holders will get more weight, but that weight will increase slowly.
Moreover, the system rewards 2% per year in WLFI to stakers who actively participate and vote at least twice during their lock period. It also allows influence to grow in a controlled way and reflects both stake size and commitment length by removing earlier voting caps and replacing them with this structured weighting model.
Finally, the company will roll out the plan in phases to give users time to adjust to the new structure after holders approve. It will also need a quorum of 1 billion eligible WLFI tokens and will run for seven days.
World Liberty gives larger token holders special access to USD1 and sends more rewards
World Liberty plans to connect WLFI staking directly to the growth of its stablecoin ecosystem by redirecting the value of USD1 through Node tiers that link large commitments to real operational benefits inside the USD1 network.
The proposal uses Node and Super Node levels that unlock specific economic and operational privileges.
However, to gain access to licensed market makers who provide a 1:1 over-the-counter conversion route from stablecoins and qualify as a Node, a participant must stake at least 10 million WLFI. With this direct channel, users don’t have to go through multiple layers of third parties.
World Liberty also wants to change who benefits from stablecoin activity and aligns those benefits with long-term token holders by subsidizing transactions to help maintain 1:1 parity between USD1 and the U.S. dollar.
And to encourage active participation in USD1 distribution rather than passive staking, nodes will receive additional WLFI rewards based on the conversion volume they generate.
For the Super Node tier, users must stake at least 50 million WLFI and will also receive guaranteed access to partnership discussions with the World Liberty team. The staking requirement is a dynamic across decentralized finance projects, as companies aim to convert passive token holders into active stakeholders in an unpredictable crypto market.
Source: https://www.cryptopolitan.com/wlfi-voting-power-now-locked-to-tokens/
