World Liberty Financial (WLFI), a crypto project associated closely with the Trump family, has offered a governance proposal that would require holders to stake their unlocked WLFI tokens to participate in voting.
The proposal, published on February 25 on the WLFI governance forum, mentioned it targets deepening community participation and long-term holders. Under the offered multi-levelled staking system, unlocked WLFI tokens need to be staked for a minimum of 180 days to have governance rights.
Holders of locked tokens can carry on voting without staking, as per the proposal. Voting power would be estimated through a square-root weighting model that looks at both the amount staked and the left lock-up duration, a mechanism planned to avoid extra concentration among large holders.
The system also proposes governance-associated incentives. Stakers who participate in a minimum of two governance votes at the time of their lock period would get a base reward having a 2% annualised yield target, funded from the WLFI treasury.
Prominent Step Towards the Evolution
World Liberty Financial referred to the proposal incentives as one of the most prominent steps forward in the evolution of WLFI. WLFI gained 0.16% in the last 24 hours and sits with a price of $0.11. It has a market capitalisation of $3.2 billion.
The proposal also sets up a tiered participation structure associated with staking size. Users staking around 10 million WLFI, worth around $1 million, would qualify as “Nodes” and gain access to licensed market makers, permitting them to change stablecoins such as USDT and USDC into World Liberty’s USD1 stablecoin at a 1:1 rate.
Stakers having more than 50 million WLFI would earn the title of “Super Nodes” and get extra benefits like priority partnership opportunities with the project team and potential eligibility for economic incentives on approved amalgamations.
The project planned the model as a way to redirect arbitrage profits gained in the latest USD1 expansion, estimated at 15 basis points per mint-sell cycle from market makers to long-term token holders.
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