World Liberty Financial has proposed a governance overhaul requiring tokenholders to stake WLFI tokens for at least 180 days to participate in votes, alongside new incentives aimed at increasing use of its USD1 stablecoin.
Under the proposal, stakers would earn a 2% annual percentage rate provided they take part in at least two governance votes during the lock-up period, with voting power determined by the amount staked and remaining lock duration.
The team said the measure is designed to ensure “voting power is held by participants with long-term alignment to the protocol,” rather than short-term holders or speculators.
Staking participants would also receive additional benefits tied to USD1 usage, including incentives for USD1 deposits on WLFI Markets and access to 1:1 conversion services from USDC and USDT into USD1 for large holders designated as “Nodes” and “Super Nodes.”
Nodes holding at least 10 million WLFI tokens and Super Nodes holding more than 50 million tokens would gain access to stablecoin conversion and fiat off-ramp services, subject to governance approval requiring one billion voting tokens and a majority in favour.
If passed, the rollout would occur in three phases beginning with staking rewards and USD1 deposit incentives, followed by the 1:1 conversion feature and finally expanded partnership access and revenue sharing for large holders.
USD1 currently ranks as the fifth-largest stablecoin with a market capitalisation of $4.7 billion within a broader stablecoin market exceeding $309 billion, dominated by USDT at $183 billion and USDC at $75 billion.
At the time of reporting, World Liberty Financial price was $0.1141.