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▲ World Liberty Financial (WLFI), USD1, Donald Trump, China, Artificial Intelligence (AI)/AI Generated Image
World Liberty Financial (WLF), a decentralized finance (DeFi) project supported by the family of former U.S. President Donald Trump, has proposed a new compensation plan. It is a program that provides tangible incentives to participants in governance voting. The idea is to transform simple token holders into active investors who participate in decision-making.
According to Coingape on September 21 (local time), World Liberty Financial announced the 'WLFI Governance Participation Incentive Program' through its community forum. This proposal aims to launch on October 1. According to the proposal, WLFI token holders must lock up their tokens for a minimum of 180 days through a non-custodial protocol. Additionally, they must cast at least one direct vote every 90 days to remain eligible for rewards. Votes delegated to other holders will not be recognized as valid votes.
Reward funds will be sourced from a dynamic pool based on actual fee revenues within the platform. Fees generated from lending markets operated by World Liberty Markets and Dolomite are the core revenue source. This reward pool is replenished bi-weekly. Anyone can check the balance through an on-chain address. A structure where the share distributed increases with fewer early participants has been adopted to incentivize initial liquidity inflow.
Safeguards have also been put in place to prevent governance monopolization by a few whale investors. A square root weighting method, which reflects both the deposited amount and the remaining lock-up period when calculating voting rights, has been applied. Additionally, the total voting rights that any single participant can exercise are limited to 5% of the entire protocol.
This proposal is interpreted as a strategic move to reduce circulating supply and enhance community cohesion. As World Liberty Financial accelerates the expansion of its USD1 stablecoin-based lending infrastructure, market attention is focused on whether the new participation reward plan can lead to active governance.
[Article Key Summary]
-World Liberty Financial (WLF) has proposed a program to reward holders who lock up tokens for more than 180 days and vote every 90 days.
-Rewards will be covered by lending platform fees, and a single participant's exercise of voting rights is limited to a maximum of 5%.
-The plan aims to encourage active participation beyond simple holding, thereby reducing market circulating supply and strengthening ecosystem cohesion.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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