WLFI unveils new proposal as it seeks to reset governance direction

World Liberty Financial [WLFI] has unveiled a new governance proposal on 25 February. It aims to reshape how participation, incentives, and decision-making function across its ecosystem.

The proposal outlines a redesigned framework that links governance influence more closely to long-term participation. Also, it introduces new economic and operational roles within the WLFI network. 

It comes as WLFI continues to expand the footprint of its dollar-backed stablecoin, USD1, and refine the internal mechanics supporting that growth.

What the new WLFI proposal introduces

At the core of the proposal is a shift toward staking-based governance. Holders of unlocked WLFI tokens would be required to stake their assets for a minimum lock-up period. 

This will allow them to vote on governance matters, with voting power weighted by both stake size and commitment duration. Locked tokens would retain voting rights without requiring additional staking.

The proposal also introduces a tiered participation structure, separating standard stakers from higher-level “node” participants.

Larger, verified participants would gain access to features such as direct stablecoin conversion mechanisms and liquidity programs tied to USD1 distribution. 

Governance rewards, targeted at roughly 2% annually, would be contingent on active participation rather than passive holding.

According to the proposal, the design intends to discourage short-term speculation, reward long-term alignment, and concentrate governance influence among participants with sustained exposure to the ecosystem.

USD1 distribution and strategic incentives

Beyond governance, the proposal places renewed emphasis on USD1’s distribution model. 

By tying certain stablecoin access and liquidity privileges to governance participation, WLFI appears to be formalizing a closer relationship between its governance token and its stablecoin strategy.

The document frames this as a way to redirect value historically captured by intermediaries toward ecosystem-aligned participants, while also strengthening USD1’s competitive position against larger dollar-pegged stablecoins already dominating the market.

Context from earlier token access challenges

While the proposal is forward-looking, it arrives with historical context. 

Some WLFI tokenholders previously experienced extended lock-ups and delays in accessing their holdings. The situation is attributed at the time to operational and structural constraints rather than technical failures.

The new proposal does not directly address those past issues. Still, they form part of the backdrop against which governance reforms are now being introduced. 

As a result, the market’s response is likely to hinge not just on the proposal’s design, but on how smoothly it is implemented in practice.

What happens next

The proposal is expected to move through WLFI’s governance process, where tokenholders will vote on whether to adopt the new framework. 

If approved, the changes would roll out in stages, with further technical and operational details to be released alongside formal implementation timelines.

Final Summary

• WLFI’s proposal signals a shift toward governance models that prioritize long-term participation over short-term activity.
• The success of the reset will depend less on design and more on execution, following past operational delays.