World Liberty Financial unveils token staking framework and stablecoin adoption initiatives

World Liberty Financial unveils token staking framework and stablecoin adoption initiatives

World Liberty Financial's development team has put forward a comprehensive governance staking framework aimed at driving greater participation in protocol governance while creating stronger incentives for adopting its USD1 stablecoin.

World Liberty Financial (WLFI), the cryptocurrency initiative backed by the Trump family, has introduced new proposals designed to enhance governance engagement via a staking mechanism and promote broader adoption of its USD1 stablecoin.

According to the proposal released on Wednesday, the development team recommended that governance voting rights should be granted only to token holders who commit to staking their assets for a minimum period of 180 days. This approach aims to ensure "voting power is held by participants with long-term alignment to the protocol," while excluding "short-term holders or speculators."

Token holders who stake their assets would receive an annual percentage rate of 2%, contingent upon their participation in a minimum of two governance votes throughout the lock-up duration. The allocation of governance power would be determined by both the quantity of tokens staked and the remaining duration of the lock-up period. Those holding locked tokens would maintain their ability to vote normally.

Incentives for USD1 usage on the table too

Since its launch, WLFI has implemented various strategies to drive USD1 adoption, including rewards programs and collaborative arrangements with institutional platforms and other decentralized finance protocols.

Within the proposed staking framework, the WLFI development team indicated that token stakers would receive "additional benefits for USD1 usage." Specifically, USD1 deposits placed on WLFI Markets, the platform's trading and lending solution, would qualify for yet-to-be-specified "incentives" provided by Dolomite, a DeFi protocol partner.

Additionally, "Nodes," defined as token holders possessing a minimum of 10 million WLFI tokens, would receive access to service providers enabling the conversion of alternative stablecoins such as USDC and USDt into USD1 at a 1:1 exchange rate, along with direct fiat off-ramp capabilities.

"Super Nodes," designated as holders controlling more than 50 million WLFI tokens, would similarly gain access to this functionality.

The WLFI team has established that for the proposal to achieve validity, participation from one billion voting tokens is required, with a majority approval necessary for passage. According to CoinGecko data, more than 27 billion WLFI tokens are currently in circulation.

Should the proposal receive approval, implementation will proceed through three distinct phases: beginning with the introduction of staking rewards and USD1 deposit incentives, then advancing to the 1:1 conversion capability, and concluding with partnership access opportunities and a revenue-sharing structure designed for "Super Nodes."

Stablecoin market dominated by USDC and USDT

As of Thursday, the aggregate market capitalization for stablecoins exceeds $309 billion, based on data from DefiLlama, a DeFi aggregator platform. USDT maintains the leading position with a market cap surpassing $183 billion and commanding a market dominance of 59%.

USDC, issued by Circle, holds the position of second-largest stablecoin measured by market capitalization, valued at $75 billion. Meanwhile, WLFI's USD1 ranks as the fifth-largest stablecoin with a market capitalization of $4.7 billion.