WLFI eyes 180-day staking to reshape governance power

WLFI proposes 180-day staking, ~2% APR to align governance and USD1 arbitrage.

World Liberty Financial (WLFI) has introduced a governance reform proposal that would require token holders to stake their assets to participate in voting, according to a proposal document released by the organization.

The WLFI Governance Staking System proposes linking influence and rewards to token lock-up duration, representing a potential shift in how governance power is distributed within the WLFI ecosystem, the document stated.

Under the proposal, holders of unlocked WLFI tokens would be required to stake their tokens for a minimum of 180 days to vote on governance matters. Voting power would be calculated using a square root formula that factors in both the amount of tokens locked and the remaining duration of the lock-up, according to the proposal.

Participants who stake their tokens and vote at least twice during their lock period would be eligible for a base reward of approximately 2% annual percentage rate, funded directly from the WLFI treasury, the proposal stated.

The proposal introduces two participation tiers for large stakeholders. The Node Tier would require a minimum stake of 10 million WLFI tokens and provide access to over-the-counter conversion pathways for stablecoins such as USDT and USDC into USD1, along with additional rewards tied to conversion volume, according to the document.

The Super Node Tier would require a minimum stake of 50 million WLFI tokens and provide priority access to the WLFI team for partnership discussions and potential economic incentives, the proposal stated.

According to the proposal document, the system aims to redirect arbitrage value back into the ecosystem. The proposal states that institutional market makers captured a significant portion of arbitrage opportunities during the expansion of the USD1 stablecoin.

The proposal is open for a seven-day community vote and requires a minimum quorum of 1 billion eligible voting tokens to pass. If approved, implementation would roll out in three phases, beginning with the activation of governance staking for all holders of unlocked WLFI tokens, according to the proposal.