WLFI proposes governance staking system and USD1 usage incentives
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World Liberty Financial (WLFI) has proposed a new staking system to ensure long-term alignment and incentivize the use of its stablecoin USD1. The proposal suggests requiring a 180-day lock-up for voting rights and offering a 2% annual return for active governance participation.
World Liberty Financial’s USD1 is currently the fifth-largest stablecoin by market capitalization at $4.7 billion, trailing behind USDT and USDC. The Trump family-backed venture WLFI has proposed new measures to increase governance participation through a staking system and to promote the use of USD1. In its latest proposal on Wednesday, the team suggested that governance votes should require holders to stake their tokens for at least 180 days. This measure aims to ensure that voting power is held by participants with long-term alignment to the protocol, rather than short-term holders or speculators. Stakers would earn an annual percentage rate of 2% provided they participate in at least two governance votes during the lock-up period. Governance power would be determined by the amount staked and the remaining time in the lock-up. Users with locked tokens can continue to vote as usual.
