World Liberty Financial (WLFI), a crypto venture backed by the Trump family, has unveiled a proposal aimed at strengthening governance participation and increasing adoption of its USD1 stablecoin.
In a proposal released Wednesday, the team suggested requiring tokenholders to stake their tokens for a minimum of 180 days in order to participate in governance votes. The goal, according to WLFI, is to ensure that voting power rests with participants who are aligned with the protocol’s long-term vision rather than short-term traders or speculators.
Under the plan, users who stake their tokens would earn a 2% annual percentage rate (APR), provided they take part in at least two governance votes during the lock-up period. Voting power would be calculated based on both the amount of tokens staked and the remaining duration of the lock-up. Tokenholders would retain their ability to vote while their tokens are staked.
Incentives for USD1 adoption also proposed
World Liberty Financial has been working to expand adoption of its USD1 stablecoin through rewards initiatives and partnerships with institutional platforms and other DeFi protocols.
As part of the proposed staking framework, the WLFI team said users who lock up their tokens would receive “additional benefits for USD1 usage.” Specifically, USD1 deposits on the trading and lending platform WLFI Markets would qualify for yet-to-be-detailed incentives provided by the DeFi protocol Dolomite.
The proposal also introduces tiered privileges for large tokenholders. “Nodes” — wallets holding at least 10 million WLFI tokens — would gain access to service providers that allow conversion of other stablecoins, such as USDC and Tether (USDT), into USD1 at a 1:1 rate, along with direct fiat off-ramps.
“Super Nodes,” defined as holders of more than 50 million WLFI tokens, would receive access to the same conversion and off-ramping features.
For the proposal to pass, World Liberty Financial has set a quorum requirement of one billion voting tokens, with a simple majority needed for approval. According to CoinGecko, more than 27 billion WLFI tokens are currently in circulation.
If approved, the plan would roll out in three phases. The first phase would introduce staking rewards and USD1 deposit incentives. The second would enable 1:1 stablecoin conversion, and the final phase would expand partnership access and implement a revenue-sharing framework for designated “Super Nodes.”
Stablecoin market led by USDT and USDC
The total stablecoin market capitalization stands at more than $309 billion as of Thursday, according to data from DefiLlama.
Tether (USDT) remains the dominant player, with a market cap exceeding $183 billion and roughly 59% market share.
Circle’s USDC ranks second, with a market capitalization of around $75 billion. WLFI’s USD1 currently holds the fifth spot among stablecoins, with a market cap of approximately $4.7 billion.
