World Liberty Financial ties voting power to staking as USD1 supply tops $4.7 Billion

• World Liberty Financial has proposed requiring WLFI holders to stake their tokens for at least 180 days before gaining the right to vote on protocol governance.
• The plan would introduce "Node" status at 10 million WLFI staked and "Super Node" status at 50 million WLFI, offering perks such as subsidized 1:1 USD1 stablecoin conversions and direct access to the team for partnership talks.
• Stakers would earn about 2 percent annually in WLFI, funded by the project’s treasury and tied to voting participation, as USD1’s circulating supply has grown to roughly $4.7 billion, with a vote date on the proposal still unset.

World Liberty Financial is moving to lock up governance power, requiring token holders to stake their WLFI for six months before they can vote on the protocol’s future.

A new proposal would require holders of unlocked WLFI tokens to stake for at least 180 days to vote, while creating “Node” and “Super Node” tiers that grant large stakers access to subsidized 1:1 conversions into its USD1 stablecoin and direct partnership discussions with the team.

Under the framework, holders who stake at least 10 million WLFI, roughly $1 Million at current prices, would qualify as “Nodes,” gaining access to over-the-counter stablecoin conversion channels facilitated by licensed market makers. World Liberty Financial said it would subsidize those market makers to maintain parity, effectively passing arbitrage opportunities that previously generated 10 to 15 basis points per cycle to qualifying stakers.

Participants who stake 50 million WLFI, about $5 Million, would qualify as “Super Nodes,” receiving guaranteed access to the team for partnership discussions and potential eligibility for additional economic incentives, subject to commercial agreements.

Stakers would earn an estimated 2% annual reward in WLFI, funded by the project’s treasury and contingent on participating in governance votes. The proposal comes as USD1’s circulating supply has grown to roughly $4.7 Billion, making it one of the largest stablecoins in the market.

A date for voting has not yet been determined.

• Large bitcoin ETF holders and corporate treasuries are aggressively buying six- and 12-month put options at $60,000 or below as insurance against a potential price drop, Deribit said.
• Open interest in $60,000 bitcoin puts on Deribit has climbed to about $1.5 billion, the highest across all strikes and expiries,

Disclosure & Polices: CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of Bullish (NYSE:BLSH), an institutionally focused global digital asset platform that provides market infrastructure and information services. Bullish owns and invests in digital asset businesses and digital assets and CoinDesk employees, including journalists, may receive Bullish equity-based compensation.