WLFI offers 180-day staking, ~2% APR to align governance and arbitrage at $1.
World Liberty Financial (WLFI) has outlined a governance reform proposal that would require token holders to stake their assets to participate in voting, according to a proposal document released by the organization.
The WLFI governance staking system proposes to tie influence and rewards to token lockup duration, representing a potential shift in how governance power is distributed within the WLFI ecosystem, the document states.
Under the proposal, holders of unlocked WLFI tokens would be required to stake their tokens for at least 180 days to vote on governance matters. Voting power would be calculated using a square root formula that takes into account both the number of tokens locked and the remaining duration of the lock, according to the proposal.
Participants who stake their tokens and vote at least twice during their lock-up period would be eligible for a base reward of approximately 2% annual rate, funded directly from the WLFI treasury, the proposal states.
The proposal introduces two levels of participation for major stakeholders. The Node tier would require a minimum stake of 10 million WLFI tokens and provide access to over-the-counter conversion pathways for stablecoins such as USDT and USDC to USD1, as well as additional rewards linked to conversion volume, according to the document.
The Super Node tier would require a minimum stake of 50 million WLFI tokens and provide priority access to the WLFI team for partnership discussions and potential economic incentives, the proposal states.
According to the proposal document, the system aims to redirect arbitrage value back to the ecosystem. The proposal indicates that institutional market makers captured a significant share of arbitrage opportunities during the expansion of the USD1 stablecoin.
The proposal is open to a seven-day community vote and requires a minimum quorum of 1 billion eligible voting tokens to pass. If approved, implementation would occur in three phases, starting with enabling governance staking for all unlocked WLFI token holders, according to the proposal.