World Liberty Financial (WLFI) token holders have approved a governance proposal requiring participants to lock their tokens for at least 180 days in order to retain voting rights on protocol decisions. The proposal passed with 99.12% support from approximately 1,800 votes in a Snapshot governance poll.
The change aims to ensure that governance participation is limited to users with a longer-term commitment to the project. According to the proposal, the new rule is designed to align voting power with stakeholders who are actively invested in the protocol’s development rather than short-term participants.
Under the new system, token holders must stake WLFI tokens for the full six-month period to remain eligible to vote on governance proposals. Users who already had their tokens locked prior to the change will continue to maintain their voting rights without interruption.
The proposal also introduces a financial incentive for participation. Stakers who take part in at least two governance votes during the lock-up period can earn a 2% annual percentage yield on their locked tokens, encouraging continued engagement with the protocol.
DAO Participation Challenges Drive Policy Shift
Low voter turnout has been a persistent challenge across decentralized autonomous organizations, often raising concerns about the concentration of governance power. Estimates suggest average participation rates in many DAOs range between 15% and 25%, with decision-making frequently dominated by a small number of large token holders.
The WLFI vote reflects one approach to addressing this issue by tying governance rights to longer-term token commitments. However, the voting results themselves also highlighted governance concentration, with more than 76% of the participating tokens reportedly controlled by just ten wallets.
The proposal also introduces a special status for large stakeholders. Users who stake 50 million WLFI tokens, valued at roughly $5 million, may gain what the proposal describes as direct access to the project’s business development team for collaboration opportunities.
Project representatives have clarified that this access does not guarantee partnerships or direct communication with founding members. Instead, it is intended as a channel for engagement with executives and business development staff.
Broader Strategy Includes Stablecoin Expansion
World Liberty Financial is positioning its ecosystem around a broader digital finance strategy centered on its stablecoin, USD1. The project has indicated that the token will support decentralized finance applications while promoting dollar-denominated digital payments.
In January, the venture applied to the US Office of the Comptroller of the Currency for a national trust bank charter that could allow it to expand financial services tied to its digital asset ecosystem. The application remains under review.
The governance changes come as the project continues exploring additional initiatives, including tokenization of real-world assets such as real estate and energy infrastructure.
