World Liberty Financial, the DeFi project supported by Donald Trump, is asking its investors to make a serious commitment. According to a new proposal, holding the generic WLFI token may no longer be enough to have a voice in the project: it now requires staking your WLFI tokens. But not everyone likes it.
This change aims to turn short-term speculators into long-term partners, but it comes with one strict condition: are you willing to freeze your assets for six months? As the crypto market continues to experience high volatility and continued dumping, it’s hard to imagine how many people are willing to make this commitment.
A new governance proposal is now online on the WLFI forum.
The community is invited to vote on the activation of Staking for $WLFI token holders to encourage participation in governance – one of the most significant advancements in the evolution of $WLFI.
Read the proposal. Do…
– WLFI (@worldlibertyfi) February 25, 2026
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What is the new WLFI staking proposal?
The proposal requires World Liberty Financial holders to stake their tokens for at least 180 days. In exchange for this commitment, you get two main things: voting power and potential staking rewards.
To prevent “whales” (investors with huge amounts of money) from completely intimidating voting, the system uses a “square root” calculation for voting power. This limits the influence of the largest holders. If a whale holds 100 times more tokens than you, it doesn’t get 100 times more voting rights. This concept of adjusting vote weights is common in modern decentralized governance to protect the little guys.
However, the rewards have a catch. The proposal aims for an annualized reward of around 2%, paid by the Treasury, but you only get paid if you actively participate. Shareholders must vote on at least two governance proposals during their lock-up period to qualify.
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Why is this happening now?
This decision does not happen in a vacuum. This appears to be a direct response to the recent instability involving the project’s flagship asset, the USD1 stablecoin. Previously, sophisticated traders and market makers were able to capture significant value from the ecosystem through arbitrage, leaving less for the community itself.
By shifting incentives toward long-term investors, WLFI attempts to redirect value from these intermediaries to loyal holders. This is an attempt to stabilize the system by ensuring that the decision makers are those committed to staying for the long term.
This public confirmation indicates that the team views staking as the primary method to lock in liquidity and reduce the volatility that has plagued the project since its launch.
Is the community supportive of this decision?
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Not everyone is happy: WLFI presale buyers still waiting for their tokens
Many 2024-2025 WLFI presale buyers remain frustrated as nearly 80% of their tokens remain locked after nearly two years. Holders complain of endless delays, poor communication, and no clear unlock schedule. Major criticisms include: token freezing (even for large investors like Justin Sun), perceived insider favoritism, low returns versus high risks, whale-only perks, and accusations of centralization or neglect.
Patience is wearing thin as the token price struggles.
And now this staking proposal. A payout of around 2% APR is relatively low in the high-risk world of DeFi. For comparison, other staking protocols often offer significantly higher returns for staking assets.
If you choose to stake, your WLFI tokens are frozen for six months. In crypto, six months is an eternity: prices can collapse, markets can turn and you would be unable to sell your tokens to stop the bleeding. The “opportunity cost” of locking up your tokens for a 2% return is a real risk factor that you must carefully weigh.
Additionally, the most lucrative benefits are reserved for the wealthy. The proposal creates a “Node” tier for those who stake 10 million WLFI (around $1 million) and a “Super Node” tier for 50 million WLFI. These tiers benefit from special access, such as 1:1 trading for the USD1 stablecoin and priority access to partnerships. If you’re a small fish, you’re essentially getting a different product than whales.
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Key takeaways
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WLFI staking proposal: Holders must lock WLFI tokens for 180 days to gain voting rights and earn rewards.
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The target reward is around 2% APR, but only if you vote at least twice during the lock-up.
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Top-tier perks like $1 stablecoin swaps are reserved for “nodes” holding more than $1 million in tokens.
The post Trump-Backed WLFI Proposes Token Staking: Everything You Need to Know appeared first on 99Bitcoins.
