Proposal: WLFI Staking Program With USD1 Stablecoin Yield Version 1.1

General
1

Executive Summary

This proposal recommends launching a secure, sustainable staking program for WLFI governance token holders, with monthly yield payouts in USD1—the protocol’s audited stablecoin. The program aims to strengthen token utility, drive ecosystem growth, and exemplify regulatory compliance and risk management, all governed transparently by the WLFI community.

Objectives

  • Enable WLFI token holders to earn sustainable, USD1-denominated yield at variable, governance-controlled APYs.

  • Maximize WLFI token utility and reward long-term ecosystem contribution.

  • Ensure yields are funded responsibly from protocol revenue, treasury reserves, and ecosystem incentives.

  • Provide best-in-class security, regular audits, and real-time transparency.

  • Maintain regulatory adaptability via opt-in KYC pools and dynamic compliance adjustment.

  • Empower community governance for all pool parameters, APY changes, and strategic reward decisions.

Staking Mechanics

  • Stake Terms: 1, 3, 6, or 12 months.

  • Yield Structure: Longer staking terms offer progressively higher APY. Yield distributes in USD1 monthly.

  • Withdrawal Penalties: Early exit returns principal but forfeits a portion of accrued yield, favoring long-term protocol support.

Sample Table (subject to DAO adjustment; actual APYs will be treasury-modeled):

Period Max APY Early Penalty
1 month 18% 30% yield loss
3 months 30% 25% yield loss
6 months 41% 15% yield loss
12 months 59% 10% yield loss

Yield Funding

  • Sourced transparently from protocol revenue, strategically allocated treasury reserves, and partnership incentives.

  • APYs dynamically update based on protocol health, with automatic dashboard alerts to the community.

  • Yield and penalties are visibly reallocated to reward active stakers and maintain sustainability.

Security & Auditing

  • Multiphase smart contract audits before and after launch.

  • Ongoing bug bounty program.

  • Regular incident, downtime, and recovery reporting.

  • Quarterly dashboard security reviews and open data publication.

Governance & Compliance

  • Staking pool configurations, APY rates, treasury allocations, and compliance status determined by DAO vote (multi-sig implementation for treasury access/actions).

  • Quarterly legal review and compliance updates available on the dashboard.

  • KYC/AML implemented for regulated pools; participants may choose pools according to their jurisdiction.

  • All changes and votes published on-chain and tracked via real-time dashboard.

Dashboard Requirements

  • Live stats: total staked, APYs, USD1 payouts, revenue, treasury health, risk alerts, governance proposal status and voting history.

  • User onboarding: wallet connect, staking calculation and APY preview, compliance selection, receipt NFT and dashboard registration.

  • Automated monthly payout, claim and compounding options.

  • Open compliance pool registry, regional enforcement and opt-in status.

Risk Management

  • Full treasury modeling of APY rates before implementation, published for community review.

  • USD1 peg stability and reserve data independently audited and posted quarterly.

  • Publicly available stress testing models and scenarios.

  • Participants accept full risk disclosure prior to staking.

Strategic Options

  • Early adopter incentives (bonus APY or NFTs for first-movers).

  • Gamified reward tiers and leaderboards.

  • Adaptive APY curve: immediate update if protocol revenue deviates >20%.

  • Quorum for DAO votes set at 25%; emergency vote can be triggered by multi-sig stewards.

Community Vote Request

I propose that the WLFI DAO approve and fund the WLFI Staking Program With USD1 Yield as outlined above, and instruct the core team to:

  • Begin technical development, auditing, and front-end dashboard creation.

  • Model and publish sample APY/treasury analysis for risk-review prior to launch.

  • Prepare regulatory frameworks and partnerships for opt-in KYC pools.

  • Announce the planned launch on all official channels, with early adopter incentives and community onboarding guides.

Voting Options:

  • :white_check_mark: FOR: Launch the WLFI Staking Program with USD1 yield, as detailed

  • :cross_mark: AGAINST: Do not launch this staking program at present

  • FOR
  • AGAINST
0 voters
4 Likes
2

I will be the first to admit that I don’t know enough about the internal workings of the platform to know if staking WLFI for yield is actually practical or functional, but having said that, I would love to see it.

4 Likes
3

If implemented properly, this would be the first blockchain project to offer holders a yield in USD1. It has the potential to become the most widely held coin, with significant price appreciation expected.

4 Likes
4

I agree with the idea of generating profits. However, a staking program that allows for both burning and profit is needed. I’m currently preparing a proposal. Could you please wait a moment? To summarize, here are the key points:

*Permanent Diamond Lock (permanent lockup mode) will be established** (permanently locked amount = market cap not included, burn effect increased)

Once permanently locked → 100% of the token will be automatically burned upon unlocking (unlocked amount refunded as USD 1 point)

Not a single token will be dumped into the market.

The total supply will decrease by the amount burned → a structural price increase will be guaranteed.

If WLFI were to implement “permanent lockup → effective burn,” it would be the cleanest way to simultaneously burn 90-95% of the total supply without bloodshed.

——-

We are currently researching staking compounding within this structure. We will post it when it’s ready.

7 Likes
5

Permanent Diamond Lock sounds.. to put it in Pres. Trump’s word, “very,very, impressive” I’m all for it!

1 Like
6

I understand this to mean that your WLFI holdings will be literally burned upon unlock and essentially “bought” from you for current value in USD1? How is that akin to staking when you would no longer hold your tokens? That sounds like a good way to appease people who intend to sell immediately without significant negative price impact, but for people who intend to hold I don’t understand what this proposal offers or what it has to do with staking.

1 Like
7

I think he wants to add a “Stake n’ Burn” function in this proposal. Let’s wait for his update.

1 Like
8

I like it Hodler_King! I like many here see the value of this project and will be holding for the long-term (diamond hands). To be able to stake while we hold would be amazing and from my limited understanding of the mechanics would be a way for us to help this project proceed going forward. Win win for all imo! :grin:

2 Likes
9

Proyecto interesante que nos daría un toque único en el ecosistema

1 Like