Liquidium’s Governance Proposal and Staking Model
Liquidium, a decentralized finance protocol built on Bitcoin, has successfully implemented a pivotal governance proposal that introduces an innovative staking model linked to the platform’s revenue streams. Following the approval of the proposal earlier this week, the value of Liquidium’s native token, LIQ, has surged by over 73.3%, with its price hovering around $0.25 according to recent data from CoinGecko.
Details of the Staking Framework
On May 13, the Liquidium Foundation proudly announced the passage of LIP-12, receiving robust backing from the community. This proposal paves the way for a new staking framework enabling LIQ holders to earn rewards that are directly associated with the revenue generated by the platform. Users will be able to stake their LIQ tokens in exchange for sLIQ, a liquid staking derivative that signifies their portion of the staking pool.
A key aspect of this new model involves allocating 30% of the protocol’s daily earnings for market buybacks of LIQ tokens from centralized exchanges. These purchased tokens will subsequently be shared among those who have staked their coins. The remaining 70% will help support operational expenses. This strategic initiative aims to promote long-term holding of LIQ tokens and create a steady demand for the tokens through automated buyback mechanisms. The foundation has indicated that development is progressing, and a launch date will be communicated shortly.
Brand Transition and Future Initiatives
In tandem with the unveiling of its staking model, Liquidium has transitioned its brand from LiquidiumFi to LiquidiumWTF. The rebranding reflects the protocol’s commitment to exploring new frontiers in Bitcoin, including innovations such as Ordinals and the memecoin culture.
Peter Giammanco, Chief Technology Officer of Liquidium, remarked that
“Our aim has always been to convert complexity into clarity, transforming what seems unapproachable into something intuitive for users. This philosophy is intrinsic to our approach and operations.”
Despite the rebranding, the protocol will maintain its existing peer-to-peer Bitcoin lending application. Additionally, the update will introduce a new feature that allows users to earn 30% of the points accrued by referred users during their initial five loans.
Looking Ahead
Liquidium plans to launch a new product dubbed Liquidium.fi at the highly anticipated Bitcoin 2025 conference. This product aims to promote the message “Borrow Beyond Borders,” signifying an ambition to extend its reach far beyond its current user demographic.
