18:05 ▪
4
min read ▪ by
World Liberty Financial (WLFI), a crypto business backed by the Trump family, has unveiled a management proposal that would require long-term bets to unlock voting rights while deepening incentives around its stablecoin, USD1. The initiative is designed to concentrate decision-making power among engaged participants and expand USD1’s role within the ecosystem.
In short
- 180 days of WLFI stakes required to unlock management voting rights.
- Stakers earn 2% APR by voting twice during the lockup period.
- $1 incentives are being extended through deposits and DeFi integrations.
- Node holders get 1:1 stablecoin conversion and fiat off-ramp.
WLFI targets long-term holders with Governance Staking and $1 rewards
Under the proposal, token holders must stake their WLFI for at least 180 days before becoming eligible to vote on governance matters. The goal is to limit short-term influence and align protocol decisions with longer-term stakeholders.
Stakeholders participating in at least two governance votes during the lock-up period would earn a 2% annual percentage rate (APR). The voting weight would vary based on the amount of WLFI staked and the remaining duration of the lock. Importantly, tokens can vote even if they are locked.
The framework also combines staking participation with expanded $1 utility on WLFI markets and external DeFi integrations. Key components include:
- Minimum 180-day wagering requirement to activate voting rights in management area.
- 2% APR reward for bettors who participate in at least two votes.
- Improved incentives for $1 deposits on WLFI markets, powered by the DeFi Dolomite protocol.
- Graduated privileges for large holders, including direct stablecoin conversion services.
Wallets containing at least 10 million WLFI tokens, classified as “Nodes”, would gain access to service providers offering 1:1 conversions of major stablecoins such as USDC and USDT to USD1, as well as off-ramp fiat options. “Super Nodes”, defined as holders of more than 50 million tokens, would receive similar access and may qualify to participate in a future revenue sharing structure.
A three-phase rollout is planned as USD1 competes in a concentrated stable market
Administration approval would require the participation of at least 1 billion voting tokens, with a simple majority required for approval. With more than 27 billion WLFI tokens currently in circulation, a quorum represents a meaningful threshold of involvement relative to supply.
If approved, the implementation would take place in three phases. The first would activate wagering rewards and $1 deposit incentives. The second would introduce conversion services. The final phase would expand strategic partnerships and formalize revenue sharing mechanisms for Super Nodes.
The proposal comes amid a highly concentrated stablecoin market. According to DefiLlam, the total market capitalization of stablecoins exceeds $309 billion.
USDT dominates with roughly $183 billion, representing about 59% of the market, while USDC holds around $75 billion. With a market cap of around $4.7 billion, USD1 ranks fifth in the stablecoin sector. It remains significantly smaller than the two largest issuers, but is in the upper echelon of the sector.
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James Godstime is a crypto journalist and market analyst with over three years of experience in crypto, Web3 and finance. Simplifies complex and technical ideas to engage the reader. Outside of work, he likes football and tennis, which he is passionate about.
DISCLAIMER OF LIABILITY
The views, thoughts and opinions expressed in this article are solely those of the author and should not be taken as investment advice. Before making any investment decision, do your own research.
