Trump-backed World Liberty Financial has outlined a new proposal to overhaul its governance through a new governance staking system designed to encourage long-term participation, redirect arbitrage profits to committed token holders, and deepen adoption of its $1 stablecoin.
World Liberty Financial aims to redirect $1 arbitrage profits to token investors
According to the proposal, unlocked WLFI (WLFI) token holders will have to stake their tokens in order to participate in the governance vote. Staking will have a minimum lock-up period of 180 days, with voting power determined by a non-linear square root formula that takes into account both the amount staked and the remaining lock-up time.
Governance rights will be dynamic and non-transferable, adjusting as blockages ease.
Active participation is at the heart of the design. Punters must vote at least twice during their lock-in period to be eligible for base stake rewards, targeted at an APR of around 2% and paid by WLFI treasury.
The reward rate will be determined at the discretion of WLFI and is not linked to revenue or operational performance. Only staking participants will receive $1 deposit incentives on WLFI markets provided by Dolomite.
The proposal also introduces a tiered structure. “Nodes,” defined as participants staking at least 10 million WLFI, would have access to convert USD 1 over-the-counter via licensed market makers at a 1:1 parity.
World Liberty Financial plans to subsidize these conversions, redirecting arbitrage opportunities previously captured by institutional intermediaries, estimated at 10 to 15 basis points per cycle.
At the top level, “super nodes” staking 50 million WLFIs would be granted guaranteed access to the WLFI team for partnership discussions and potential economic incentives, subject to compliance and commercial review.
The proposal requires a quorum of one billion eligible WLFI voting tokens and a simple majority to pass, with a seven-day voting window. If approved, implementation will occur in three phases, starting with the activation of governance staking.