WLFI Unveils Governance Staking and USD1 Incentives Plan

WLFI proposes 180-day governance staking with 2% APR and USD1 incentives; USD1 ranks fifth with $4.7B market cap.

World Liberty Financial (WLFI) has introduced a proposal aimed at expanding governance participation and increasing adoption of its stablecoin, USD1.

The plan combines a token staking requirement for voting with incentives tied to USD1 usage across its ecosystem.

Governance Staking Model Targets Long-Term Participation

WLFI has proposed that governance votes require token holders to stake their tokens for at least 180 days.

The team stated that this structure would ensure “voting power is held by participants with long-term alignment to the protocol,” rather than short-term holders.

Under the plan, users who stake their WLFI tokens would earn a 2% annual percentage rate.

To qualify for the reward, participants must vote in at least two governance proposals during the lock-up period.

Governance weight would depend on both the amount staked and the remaining lock-up duration.

The proposal sets a participation threshold of one billion voting tokens for any measure to be valid.

A majority vote would be required for approval. According to CoinGecko data, more than 27 billion WLFI tokens are currently in circulation.

USD1 Incentives and Conversion Features

WLFI also outlined new incentives aimed at increasing USD1 adoption. The team stated that users who stake WLFI tokens would gain “additional benefits for USD1 usage.”

USD1 deposits on WLFI Markets would qualify for incentives provided through the DeFi protocol Dolomite.

The proposal includes a 1:1 stablecoin conversion feature for certain large holders.

“Nodes,” defined as wallets holding at least 10 million WLFI tokens, would gain access to providers that convert USDC and USDT into USD1 at parity.

These holders would also have access to fiat off-ramps. “Super Nodes,” which hold more than 50 million WLFI tokens, would receive access to the same conversion services.

The rollout would occur in three phases. The first phase would launch staking rewards and USD1 deposit incentives, followed by the conversion feature and then partnership access and a revenue-sharing framework for Super Nodes.

Related Reading: WLFI Enters Luxury Real Estate With Tokenized Maldives Deal

Stablecoin Market Context and USD1 Position

The proposal comes as competition in the stablecoin market remains strong. Data from DefiLlama shows the total stablecoin market capitalization exceeds $309 billion.

Tether’s USDT leads with over $183 billion and a market share of about 59%. Circle’s USDC ranks second with a market capitalization of approximately $75 billion.

WLFI’s USD1 currently holds the fifth position among stablecoins, with a market capitalization of $4.7 billion.

WLFI has sought to expand USD1 usage through reward programs and institutional partnerships.

The new governance staking and incentive structure forms part of that broader strategy to increase token engagement and stablecoin circulation.

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