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World Liberty Financial plans to require token holders to lock up WLFI for 180 days before voting on governance proposals. The February 25 proposal also introduces Node and Super Node tiers tied to USD1 stablecoin market-making access. Holders who stake 10 million WLFI, about $1 million at current prices, would qualify for direct stablecoin conversion channels and arbitrage opportunities.
Under the proposal, holders of unlocked WLFI must stake their tokens for at least 180 days to participate in governance votes. The framework links voting rights to both token amount and lock-up duration.
Governance power would follow a non-linear formula based on the number of staked tokens and the remaining lock-up time. The design seeks to limit excessive concentration of voting control. The proposal states that this structure aligns voting power with long-term participants rather than short-term holders.
Stakers would earn an estimated 2% annual reward in WLFI from the project’s treasury. Yet, they must take part in governance votes to receive those rewards. A date for the governance vote has not been announced.
The governance overhaul follows recent volatility tied to USD1. Days earlier, the project reported a coordinated attack that briefly pushed USD1 off its dollar target. USD1 returned to parity the same day.
The proposal creates a Node tier for holders who stake at least 10 million WLFI. At current prices, that requirement equals roughly $1 million.
Node stakers would gain access to over-the-counter conversion of USD1 into other stablecoins through partner market makers. World Liberty Financial said it would subsidize licensed market makers to maintain one-to-one parity for USD1.
The project stated that market makers currently capture arbitrage spreads of 10 to 15 basis points per cycle. Under the proposal, those spreads would pass to Node stakers instead. Basis points refer to one hundredth of a percentage point.
USD1’s circulating supply has grown to about $4.7 billion since the start of the year. That growth makes it the fifth-largest stablecoin in the market. Although USD1 and rivals claim one-to-one backing, market forces keep prices close to their dollar target.
Market makers profit when stablecoins drift from their peg. They buy and sell tokens to capture small price differences. The new structure requires firms seeking those opportunities to stake WLFI and support governance participation.
The proposal also introduces a Super Node tier for holders who stake 50 million WLFI, roughly $5 million at current prices. Super Nodes would receive guaranteed direct access to the project’s team for partnership discussions.
They may also qualify for additional economic incentives, subject to commercial agreements. The framework positions large stakeholders for deeper engagement with the project’s operations.
Meanwhile, the staking proposal arrives after a recent security incident. World Liberty Financial said attackers hacked several co-founders accounts, paid influencers to spread fear, uncertainty, and doubt, and opened large WLFI short positions.
Following the incident, investors withdrew more than $290 million from USD1, according to DefiLlama data. Even so, USD1 restored its dollar peg the same day it slipped.
The new staking system links governance power and market-making access to significant token commitments. As USD1 expands and governance rules tighten, will smaller holders accept a system that requires six-month lockups to shape the protocol’s future?
Read More: WLFI Jumps 10% as Apex Pilots USD1 Tokenized Fund Settlement
World Liberty Financial plans to tie WLFI governance to a 180-day staking lock-up while giving Node and Super Node stakers special USD1 stablecoin access. The proposal links voting power, rewards, and market-making benefits to larger token commitments, which could reshape how the protocol balances control and participation.
