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The cryptocurrency initiative World Liberty Financial (WLFI), associated with the family of former U.S. President Donald Trump, has unveiled a staking and governance system that includes rewards for token holders.
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To participate in voting, users must lock their tokens for a minimum of 180 days. The company stated that this will ensure that only long-term interested holders, rather than short-term speculators, are involved in the governance of the protocol.
The annual yield will be set at 2% provided that participants engage in at least two votes during the lock-up period. The weight of each vote will be determined by the amount of tokens frozen and the remaining duration of the lock.
A vote will be considered valid if at least 1 billion voting tokens are involved and a majority is achieved. According to CoinGecko, there are over 27 billion WLFI tokens in circulation.
Additional conditions are in place for large holders. Owners of at least 10 million WLFI will gain access to providers that allow the conversion of stablecoins, including USDC and USDT, into USD1 at a 1:1 rate and facilitate withdrawals in fiat currency.
WLFI also announced that users who lock their tokens will receive additional benefits when using the stablecoin USD1. Deposits in USD1 on the WLFI Markets platform may yield incentives from the DeFi protocol Dolomite, although specific parameters have not yet been disclosed.
Should the initiative receive approval, the implementation will occur in three phases: the launch of staking rewards and incentives for USD1 deposits, the introduction of the 1:1 conversion, and the subsequent integration of partnership programs with revenue sharing for large holders.
Recently, the stablecoin USD1 temporarily lost its peg to the dollar, with developers attributing this to an unsuccessful hacking attempt.
