WLFI proposes governance staking system and USD1 usage incentives

CoinTelegraph

by Stephen Katte

February 26, 2026

AI-Generated Deep Dive Summary

World Liberty Financial (WLFI), a cryptocurrency venture backed by the Trump family, has introduced a new proposal aimed at enhancing participation in its blockchain governance system. The initiative focuses on encouraging holders to stake their USD1 tokens for a minimum of 180 days, aligning voting power with long-term stakeholders rather than short-term speculators. This move seeks to ensure that governance decisions are influenced by those genuinely invested in the protocol's future. Under this proposal, stakers who participate in at least two governance votes during the lock-up period will earn a 2% annual percentage rate (APR). The voting power is determined by both the amount staked and the remaining time in the lock-up period. This system allows users to continue voting as usual while their tokens are locked, promoting consistent engagement and reducing speculative behavior. USD1, WLFI's stablecoin, currently holds a significant market position as the fifth-largest stablecoin with a $4.7 billion market capitalization. Positioned behind giants like USDT (Tether) and USDC (Circle), USD1 is looking to differentiate itself through innovative governance mechanisms. The proposed staking system not only aims to boost participation but also incentivizes the use of USD1, potentially enhancing its appeal in the competitive stablecoin market. This proposal addresses a common challenge

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Originally published on CoinTelegraph on 2/26/2026