Summary
This proposal establishes a rule-based system that converts USD1 adoption into direct value for WLFI holders, while enforcing strict supply discipline, transparency, and governance credibility.
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Key Points
- Mandatory USD1 Revenue Allocation
All USD1 revenues are allocated by protocol rule:
•40% WLFI buybacks (open market only)
•25% WLFI burn (permanent)
•20% WLFI staking rewards
•10% USD1 liquidity reserve
•5% operations (hard cap)
Ratios are DAO-locked. Changes require ≥75% approval.
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- Buyback, Burn & Staking (Automatic)
•Buybacks executed periodically via TWAP
•Burns are irreversible and on-chain
•Staking rewards funded only from USD1 revenues (no emissions)
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- Performance-Based Incentives Only
•WLFI incentives released only after verifiable USD1 milestones
•Mandatory vesting (6–12 months)
•Clawbacks if performance falls
•No upfront grants
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- Supply Discipline (Binding Rules)
•Locked WLFI tokens are non-sellable, non-transferable, non-collateralizable
•Strategic partners must buy WLFI from the open market
•Violations trigger penalties and DAO review
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- Transparency & Reporting
Quarterly disclosure of:
•USD1 revenues
•WLFI buybacks & burns
•Staking payouts
•Circulating supply changes
•Treasury balances
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Why This Matters
•Aligns USD1 growth with WLFI holder value
•Prevents unexpected dilution
•Restores governance trust
•Enables institutional participation
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Vote
•YES — Adopt the USD1 → WLFI value capture & supply discipline framework
•NO — Reject the proposal