World Liberty Financial has introduced a proposal to implement a governance staking system designed to strengthen long-term participation in its protocol. Under the plan, token holders would need to stake assets for at least 180 days to vote, with governance power tied to both stake size and lock-up duration. Participants who engage in governance activity could earn a 2% annual reward during the staking period.
The proposal also includes incentives to expand usage of the platform’s USD1 stablecoin, including potential rewards for deposits on WLFI Markets and integration with DeFi partners. Large token holders categorized as Nodes and Super Nodes may receive access to conversion services for other major stablecoins at a 1:1 rate and fiat off-ramp features, subject to approval.
The move reflects broader competition in the stablecoin sector, where USD1 ranks among the top tokens by market capitalization but trails dominant issuers such as USDT and USDC. Enhanced governance alignment and utility incentives suggest a strategic focus on ecosystem growth and user retention within an increasingly crowded digital payments landscape.