World Liberty Financial overhauls WLFI governance and introduces mandatory staking

World Liberty Financial, a crypto project linked to the Trump family, has published a proposal to change the governance structure of the WLFI token. The document was posted Wednesday on the project’s governance forum. The team proposes requiring holders of unlocked tokens to stake them for at least 180 days in order to participate in voting.

Under the proposal, holders of locked WLFI tokens would retain voting rights without staking. Voting power would be calculated using a square root weighting mechanism that takes into account both the staking amount and the remaining lockup period. The mechanism aims to reduce the concentration of influence among large holders, The Block reported. Participants who vote at least twice during the lockup period would be eligible for a base annual yield of 2%, funded by the WLFI treasury. The proposal requires a quorum of 1 billion voting tokens and a simple majority to pass. Once it moves to the final stage, a seven-day voting window will open.

According to CoinGecko, WLFI is trading at $0.11, with a market capitalization of $3.2 billion and roughly $18 million in 24-hour trading volume.

WLFI introduces tiered staking and node status

The proposal establishes participation levels based on the number of tokens staked. Users who stake at least 10 million WLFI would qualify for “node” status. At current prices, this equals approximately $1 million. Nodes would gain access to licensed market makers and the ability to convert USDT and USDC into the USD1 stablecoin at a 1:1 ratio.

Holders of more than 50 million WLFI would qualify for “Supernode” status. They would receive priority partnership opportunities and potential economic incentives tied to approved integrations. The team estimates that arbitrage profits during recent USD1 fluctuations reached 15 basis points per mint-and-redeem cycle. The new mechanism is designed to redirect that margin from market makers to long-term token holders.

Reform amid USD1 volatility

The initiative comes as the project seeks deeper integration between WLFI and the USD1 stablecoin. USD1 recently dipped to $0.99707. The team described the move as a coordinated short-selling and social media attack.

Over the past 24 hours, WLFI has risen 0.16%. First- and second-tier token indices gained 6.55% and 3.82%, respectively. Stricter staking requirements could reduce the token’s liquid supply. That may affect trading volumes and price dynamics.

New incentive structure and revenue redistribution

A quorum of 1 billion WLFI implies that a significant concentration of tokens will be required to approve governance changes. At current prices, this represents more than $110 million in voting weight. The square root weighting approach limits the dominance of the largest holders compared with linear voting systems. Similar frameworks are used in several DeFi protocols to mitigate centralization.

The 2% base yield appears modest compared with double-digit returns elsewhere in DeFi, but it is not tied to market volatility. If a substantial portion of unlocked WLFI is staked for 180 days, the circulating supply would decline. With a $3.2 billion market cap, even partial supply reduction could increase price pressure. Redirecting the 15 basis points of USD1 arbitrage margin would also reshape income distribution within the ecosystem and reduce the role of intermediaries.

Read also: WLFI faces scrutiny over wallet ties to global sanctioned entities

Disclaimer. While we adhere to strict

Editorial Integrity, this post may contain references to products from our partners.

Latest WLFI News

• Forex
• Crypto