World Liberty Fi governance approved a proposal to create a three-tiered node structure to serve the long-term goals of the ecosystem. The proposal passed with 99.12% support and will change the use cases of the WLFI token.
World Liberty Fi increased the importance of WLFI staking. Despite this, whales have a significant influence on vote outcomes. 76% of the support for the latest vote came from just 10 wallets, bringing back concerns that World Liberty Fi is controlled by whales.
Currently, the World Liberty Fi main wallet holds over 44B tokens, while 21.15B are in the lockbox. World Liberty Fi sits on $4.73B in assets, of which WLFI and USD1 are the main holdings.
Top tier whales to gain access to the World Liberty Fi team
Following the vote, stakers with 50M WLFI (valued at around $5M) will operate the top tier nodes. Those node operators will also have direct access to the World Liberty Fi team and become an even more important part of the decision process.
All nodes will have a 180-day WLFI lockup period, including the base node, with no minimum amount of tokens. Nodes will also grant 2% annualized yield for all tiers.
Small-scale nodes will have USD1 deposit incentives without swapping privileges. The six-month lockup period matches the previous ideas of granting governance rights only after showing a long-term commitment.
Mid-tier nodes will be unlocked for a $1M investment. All high-value nodes will have the opportunity to swap USD1 on an OTC market for fiat, and will receive additional incentives for high-volume activity for the first 1,000 nodes.
World Liberty Fi has onboarded multiple institutional holders and whale buyers, who may be seeking more returns from the project. The new vote prioritizes whale partners and may keep WLFI out of circulation.
WLFI still trades close to all-time lows of around $0.10, after a recent dip to a $0.09. The token has put together short-term rallies, but overall, it feels pressure from ongoing selling.
World Liberty Fi diminishes the supply of USD1
USD1 is the main tool for DeFi participation for World Liberty Fi users. Since February 10, the supply of tokens diminished from a peak of $5.3B, down to $4.7B.
USD1 will also become a part of the staking program, further diminishing the supply. The token was widely used for meme trading on BNB Chain.
USD1 mostly spread to BNB Chain and Solana, although activity slowed down in the past month. | Source: DeFi Llama
Currently, BNB Chain makes up the bulk of USD1 activity. Some of the supply has also shifted to Solana.
The velocity of USD1 has fallen in the past month on all its major chains, with the exception of Aptos, where activity grew by 23% in the past day. The bulk of USD1 centralized volume is still on Binance. The lower USD1 activity is also one of the reasons to encourage staking as a new use case for the token.
