1. Introduction
World Liberty Financial (WLFI) is a DeFi (Decentralized Finance) platform designed to allow users to manage digital assets in a stable and transparent manner. This proposal introduces a staking program for WLFI token holders. The program is designed to enhance the stability and participation in the WLFI ecosystem while emphasizing the utility of the token.
This staking program utilizes WLFI tokens not merely as assets, but as tools for platform governance and ecosystem participation. All benefits are determined based on the protocol’s operational results, and no returns or profits are guaranteed. This is to comply with securities laws, treating WLFI tokens as utility tokens rather than investment products. Participants engage at their own risk and must be aware of market volatility and protocol risks.
2. Purpose
- Encourage long-term holding of tokens by holders to secure the long-term stability of the WLFI ecosystem.
- Promote protocol governance and development through user participation.
- Expand WLFI’s utility within the DeFi ecosystem to provide users with additional participation opportunities.
- All mechanisms are designed with a utility focus to avoid violating securities laws, and profit distribution operates in the form of community sharing based on the protocol’s operational performance.
3. Staking Mechanism
WLFI token holders can stake tokens within the platform. Staking is automated through smart contracts and follows the structure below:
3.1 Staking Periods and Tiered Reward System
Tiered rewards are provided based on the staking period. Rewards may be paid in WLFI tokens or USD1 stablecoins and are determined by the protocol’s operational performance (e.g., trading volume, liquidity provision, etc.). Rewards are not guaranteed and may vary according to market conditions. All reward rates are fixed at a maximum of 10% or less.
- Short-term Staking (1~3 months): Basic reward rate (e.g., potential rewards at an annual level of 2~4%, based on protocol performance). This encourages initial participation while maintaining liquidity.
- Medium-term Staking (3~6 months): Medium reward rate (e.g., annual level of 4~6%). It induces long-term holding and grants additional governance points.
- Long-term Staking (6 months or more): Highest reward rate (e.g., annual level of 6~10%). This provides priority benefits to holders contributing to ecosystem stability.
Reward calculation is based on the following formula:
- Reward = Staked Amount Ă— Period Coefficient Ă— Protocol Performance Indicator
(Period Coefficient: Short-term=1x, Medium-term=1.5x, Long-term=2x)
Tokens are locked during the staking period, and early withdrawal may incur penalties (e.g., reduction in some rewards). This is to maintain ecosystem stability.
3.2 Reward Distribution Mechanism
Rewards arise from various revenue sources in the protocol and are distributed to stakers. To comply with securities laws, this operates as “community sharing” rather than “distribution.”
- Fee Distribution: A portion of transaction fees within the WLFI platform (e.g., swaps, loans) is shared with stakers. 20~30% of the fee pool may be allocated to the staker pool, varying based on the protocol’s trading volume.
- Collateral Loan Interest Distribution: A portion (e.g., 10~20%) of interest from collateral loan services on the platform is distributed to stakers. This is based on interest paid by loan users and determined by loan market activity.
- RWA Investment Priority: Long-term stakers have priority access to investment opportunities based on Real World Assets (RWA). This is a priority right to participate in RWA tokenization projects within the WLFI platform, with investment itself being the user’s choice. No returns are guaranteed.
- New Project Priority Participation: Stakers have priority participation in new projects within the WLFI ecosystem (e.g., partnership DeFi apps, new services based on USD1). This is provided in forms such as airdrops, beta testing, or governance voting priority, enhancing community engagement.
Reward payments are automated monthly or quarterly and can be adjusted through governance voting.
4. Governance and Participation
Staking holders can participate in WLFI governance:
- Voting Rights: Voting rights proportional to the staked amount. Used for protocol updates, reward rate adjustments, etc.
- Proposal Rights: Ability to submit new proposals when staking above a certain amount.
This is to maintain WLFI as a community-centered platform.
5. Risks and Legal Disclaimer
- Risks: Staking involves risks such as market volatility, smart contract vulnerabilities, and protocol failures. Rewards are not guaranteed, and losses are possible. Please seek independent advice before participating.
- Legal Compliance: This program is designed not to violate securities laws (e.g., U.S. SEC regulations). WLFI tokens are not securities and do not guarantee investment returns. They are utility tokens serving as tools for platform participation. Tax and regulatory compliance is the user’s responsibility.
- Change Possibility: The protocol may be changed through governance voting.
6. Conclusion
This WLFI staking program focuses on building the future of DeFi through user participation. By encouraging long-term holding and sharing ecosystem benefits, it can enhance WLFI’s value. If you wish to participate, visit the official WLFI platform (https://worldlibertyfinancial.com). For additional questions, inquire through community channels.
This proposal is prepared as of July 25, 2025, and may be updated upon actual implementation.
y support.
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