Proposal: Launch $WLFI Governance Engagement Incentive Program
This account is currently community-ran, and is NOT managed by the official World Liberty Financial team.
Original post: https://governance.worldlibertyfinancial.com/t/proposal-launch-wlfi-governance-engagement-incentive-program/54462
Summary
The World Liberty Financial ecosystem has experienced significant growth, led by the rapid adoption of USD1 and the continued expansion of World Liberty Markets. USD1 has quickly grown into a major stablecoin with increasing adoption across centralized exchanges, DeFi protocols, institutional use cases, and multiple blockchain networks. At the same time, World Liberty Markets provided by Dolomite (“WLFI Markets”) has grown into a top-10 lending market and continues to experience strong growth in deposits, borrowing activity, and overall usage. This proposal seeks to build on that momentum by using governance staking incentives as a mechanism to deepen participation in WLFI governance.
This proposal recommends launching the $WLFI Governance Engagement Incentive Program (the “Program”) by October 1, 2026, introducing a governance participation incentive designed to encourage holders to remain actively aligned with governance and participation in the long-term direction of the World Liberty Financial ecosystem. The Program is structured as a promotional campaign using promotional allocations and participation recognition to encourage governance engagement and platform usage. This proposal, if approved, will supersede and replace the ecosystem proposal that was approved on March 12, 2026.
The initial staking rewards pool may be funded from various sources, including:
- Amounts from ecosystem sources, which may include fees received by WLF from World Liberty Markets; and
- Additional ecosystem and marketing incentives allocated to the staking program.
Amounts designated for the staking program from World Liberty Markets or other ecosystem sources may be transparently deposited into a publicly viewable rewards address alongside any additional incentives allocated to the program. The rewards pool would then be topped up bi-weekly as additional amounts are allocated, allowing the potential for the pool to grow alongside the continued expansion of World Liberty Markets and the broader World Liberty Financial ecosystem.
As part of this proposal, governance participation would also evolve. Under the Program, all $WLFI holders (including early supporter $WLFI tokens subject to existing vesting contract) would continue to retain the right to participate in governance votes, but holders of unlocked $WLFI who actively participate through the official staking governance commitment would be eligible for the additional Program incentives.
$WLFI tokens actively staked through the Program would be eligible for rewards if the tokenholder voted at least once on ecosystem governance proposals for every 90 days that the tokens are staked. World Liberty Financial would commit to proposing at least one (1) governance vote per calendar quarter. Promotional allocations would be made solely in connection with completing voting-related requirements, and not for passive holding or staking alone. Amounts added to the rewards pool as part of any bi-weekly top up will be allocated to tokens that are staked over the following two weeks. Any tokenholders who fail to meet the governance participation requirements when they remove their staked tokens from the Program will forfeit their allocated rewards, and those rewards will be allocated to the remaining staked tokens to benefit active governance participants. This structure is intended to align governance with active, long-term participation in the ecosystem.
Tokenholders who have delegated their votes to another holder are not voting directly, and delegated votes will not count toward the governance participation requirements of this Program. To satisfy the participation requirements and remain eligible for promotional allocations, a tokenholder must vote directly. Separately, no single holder may individually accumulate more than 5% of voting power through the governance participation protocol; however, a holder may exceed 5% of voting power through the receipt of delegated votes from other holders.
To facilitate measurement of active and ongoing governance participation, a holder would lock $WLFI in an on-chain governance participation protocol for at least 180 days. The holder could withdraw after the lock expires, subject to any applicable cooldown or withdrawal process, or choose to stay staked and continue to earn rewards (subject to governance participation requirements). Rewards could be collected at the end of a staking term when the holder withdraws the tokens from the Program, or at the end of a staking term when the holder chooses to initiate a new staking term. The governance participation protocol would be non-custodial. Neither the protocol nor World Liberty Financial would have access to, custody of, or discretionary control over a participant’s $WLFI. Participants would interact with the protocol through their own wallets, and locking, voting, and withdrawal transactions would be processed by autonomous smart contracts.
WLFI remains solely a governance utility token. The Program does not change the existing utility of WLFI or give any participant an ownership interest in, or economic rights relating to, the WLF platform or World Liberty Financial.
Proposed Staking Incentive Mechanism
Staking rewards would not be based on a fixed or guaranteed rate. Instead, rewards would be dynamically calculated based on (1) the total size of the available staking rewards pool; (2) the total amount of $WLFI participating in governance staking; (3) each participant’s proportionate share of the total $WLFI staked, and (4) whether a participant has met the governance participation requirements.
The proposed structure is designed to reward holders who actively participate in the World Liberty Financial governance ecosystem. If fewer $WLFI tokens are initially staked, early participants may represent a larger proportionate share of the available reward pool. If additional holders begin governance staking, rewards would dynamically adjust based on the amount of $WLFI participating and the size of the available rewards pool.
At the same time, the rewards pool may continue to be topped up with additional amounts allocated from various ecosystem sources, which may include borrowing fees from World Liberty Markets received by World Liberty Financial, the treasury or other sources as determined to encourage governance participation.
The objective is to reward holders who choose to stake their tokens, actually vote on governance proposals, satisfy applicable participation thresholds, and remain aligned with the continued development and direction of World Liberty Financial. No promotional allocation is provided merely for passive holding or passive staking of $WLFI. Instead, programmatic distributions are made only when a participant engages in governance in a manner that supports protocol usage and satisfies objective participation conditions established by the protocol.
No promotional allocation is guaranteed, and the amount, timing, and availability of any allocation depend on applicable protocol parameters, verified voting activity, and available budget.
Transparent Reward Funding
Transparency would be a core component of the governance staking program. World Liberty Financial would publish the designated governance staking rewards address, allowing the community to independently monitor the rewards available for distribution.
This would provide transparency into:
- Amounts allocated to the governance staking program from various ecosystem sources, which may include the WLF treasury and fees from World Liberty Markets;
- Additional ecosystem and marketing incentives allocated to the program;
- Bi-weekly additions to the rewards pool;
- Total rewards distributed; and
- Remaining rewards available for distribution.
This approach allows the community to independently verify the funding and distribution of staking rewards onchain.
Proposed Implementation
If approved, World Liberty Financial would work to:
- Launch $WLFI staking by October 1, 2026.
- Transition WLFI governance voting mechanics so that all $WLFI holders retain voting rights.
- Establish a dedicated governance staking rewards pool and publish its address so that funding of and distributions from the governance staking rewards pool can be transparently monitored onchain.
- Allocate amounts from various ecosystem sources, which may include the WLF treasury, fees from World Liberty Markets, to the initial rewards pool for the Program.
- Supplement the rewards pool with additional ecosystem and marketing incentives allocated to the Program.
- Top up the rewards pool on a bi-weekly basis with additional amounts and designated incentives allocated to the Program from various ecosystem sources, which may include the WLF treasury, borrowing fees from World Liberty Markets and other sources as determined to incentivize governance participation.
- Dynamically calculate staking rewards based on the size of the available rewards pool and the total amount of $WLFI participating in staking.
- Provide ongoing transparency into the funding and distribution of staking rewards through publicly viewable onchain addresses and appropriate community reporting.
Disclosures
The Governance Engagement Incentive Program is a promotional program intended to encourage use of the WLF platform and active participation in its governance process, similar to a loyalty or usage incentive program. Promotional allocations are discretionary, are not guaranteed, and may be modified, suspended, or discontinued at any time. Participation is voluntary and solely for governance engagement; it does not confer ownership or any claim relating to the WLF platform or its activities or any economic rights. Delegated votes do not count toward the governance participation requirements of the Program; tokenholders must vote directly to satisfy participation requirements. WLFI remains solely a governance utility token used for proposing and voting on governance matters related to the WLF platform.
Conclusion
As World Liberty Financial enters its next stage of growth, $WLFI governance should incentivize holders to demonstrate long term commitment and choose to actively participate in determining the future direction of the ecosystem, while preserving the ability of all holders to participate in governance. Governance staking helps to create that alignment.
By staking their unlocked $WLFI and participating in governance, holders demonstrate their commitment to continued governance participation and become eligible to participate in a dynamically funded rewards program. The Program may be modified, suspended, reduced, or discontinued at any time.
Governance Vote
Approve the launch of the $WLFI Governance Engagement Incentive Program by October 1, 2026, together with the transition of WLFI governance voting mechanics so that all $WLFI holders retain voting rights. Approve an initial promotional allocation pool funded from various ecosystem sources, which may include the WLF treasury, fees from World Liberty Markets or other sources and additional designated ecosystem and marketing incentives, with promotional allocations dynamically calculated based on the available pool, verified voting activity, total $WLFI staked, and applicable participation thresholds, and with funding and distributions transparently viewable onchain.
Vote Options:
- YES — Approve the $WLFI governance staking, governance participation, and rewards program.
- NO — Do not approve the proposed program.
- ABSTAIN — Participate in the vote without voting for or against the proposal.
This account is currently community-ran, and is NOT managed by the official World Liberty Financial team.
Original post: https://governance.worldlibertyfinancial.com/t/proposal-launch-wlfi-governance-engagement-incentive-program/54462