Lorenzo Protocol

World Liberty Financial has published a new governance proposal that would introduce a staking requirement for WLFI token holders and establish a tiered participation structure tied to governance activity.
The proposal, now live on the WLFI forum, asks the community to vote on implementing what the team calls the WLFI Governance Staking System. It stands as one of the most significant governance proposals brought forward in the WLFI ecosystem to date and, if approved, would materially reshape how participation and incentives are structured around the token.
The stated goal is to increase long-term participation in governance while expanding incentives tied to the USD1 ecosystem.
Voting is scheduled to remain open for seven days and requires a quorum of 1 billion eligible WLFI voting tokens.
Staking Would Become Required for Governance
Under the proposal, holders of unlocked WLFI tokens would need to stake their tokens in order to participate in governance voting. Holders of locked tokens would remain eligible to vote without staking.
Key proposed parameters include:
Minimum lock-up period of 180 daysGovernance power weighted by staking amount and remaining lock durationSquare root weighting designed to limit concentration of voting powerGovernance rights that adjust dynamically as lock-ups decay
The proposal also introduces a base staking reward targeting approximately 2 percent APR for participants who actively vote. Only stakers who participate in at least two governance votes during the lock period would qualify for rewards.
The WLFI team noted the reward rate would be determined at its discretion and funded from the WLFI treasury.
The proposal also links additional incentives to participation in governance staking.
According to the specification, WLFI incentives on USD1 deposits made through WLFI Markets on Dolomite would be available only to staking participants. Non-staking holders would not receive these deposit incentives.
The motivation section of the proposal states the system is intended in part to redirect value that has recently accrued to market makers during USD1 expansion.
Node Tier Introduces OTC Conversion Access
The proposal outlines a new Node tier for participants staking at least 10 million WLFI, which the document notes is approximately $1 million at current prices.
In addition to base staking privileges, Nodes would receive access to OTC conversion pathways that allow direct interaction with licensed market makers facilitating 1:1 conversions between supported stablecoins and USD1.
According to the proposal:
WLFI would partner with licensed market makersWLFI may subsidize market makers to maintain parityNode participants must complete KYC with those providersAdditional rewards may be issued based on conversion volume
The proposal frames the Node structure as a mechanism to shift arbitrage opportunities toward long-term ecosystem participants.
Super Node Tier Adds Partnership Access
A higher Super Node tier is proposed for participants staking at least 50 million WLFI, approximately $5 million at current prices.
Super Nodes would receive all Node privileges plus additional access to the WLFI team for potential partnership discussions. The proposal states that this access is intended to prioritize engagement with participants who demonstrate significant commitment to the ecosystem.
The document notes that Super Node status does not guarantee partnership and remains subject to commercial and technical review.
Additional potential benefits may include eligibility for economic incentives tied to approved platform integrations, subject to compliance and due diligence.
Phased Implementation
If approved, the proposal outlines a three-phase rollout:
Phase 1
Launch governance staking for unlocked WLFIActivate staking rewards and USD1 deposit incentives
Phase 2
Activate Node tierFinalize licensed market maker partnershipsEnable OTC conversion access
Phase 3
Activate Super Node tierEstablish partnership access framework
The WLFI team said specific timelines would be communicated after the vote concludes.

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Welcome to the Lorenzo Letter, your weekly update on stablecoins, DeFi, tokenization, crypto legislation, and more.
In This Issue:
Stablecoin Yield Debate Continues Without ResolutionDeel Partners with MoonPay for Stablecoin Salary PayoutsKraken Dismisses CFO as IPO Preparations Continue
Stablecoin Yield Debate Continues Without Resolution

Closed-door talks between U.S. banking leaders and crypto industry representatives ended without agreement on stablecoin yield rules, leaving the Clarity Act stalled in Congress. The White House–hosted session focused on whether issuers of dollar-pegged stablecoins should be permitted to offer interest or rewards to holders.
Banking groups circulated a proposal calling for a broad prohibition on financial or non-financial incentives tied to payment stablecoins, going beyond the latest draft of the Clarity Act. That version would ban passive interest payments while allowing limited, activity-based incentives under defined conditions.
Major banks, including JPMorgan Chase, Bank of America, and Goldman Sachs, participated alongside crypto firms and trade groups such as Coinbase and the Blockchain Association. While participants described discussions as constructive, no resolution was reached, and negotiations will continue.
Full Story:
https://lorenzo-protocol.ghost.io/stablecoin-yield-debate-continues-as-white-house-talks-end-without-resolution/
Deel Partners with MoonPay for Stablecoin Salary Payouts

Global payroll platform Deel will begin offering employees the option to receive salary payments in stablecoins through a partnership with MoonPay, starting in the United Kingdom and the European Union next month. A second rollout phase targeting the United States is planned later.
Under the arrangement, employees can opt to receive part or all of their wages in stablecoins delivered to non-custodial wallets. Deel will continue handling payroll and compliance, while MoonPay will manage conversion, settlement, and onchain wallet delivery.
Deel processes roughly $22 billion in annual payroll volume across more than 150 countries. The companies did not specify which stablecoins would be supported at launch or provide a timeline for U.S. regulatory approvals.
Full Story:
https://www.triana.media/deel-to-launch-stablecoin-salary-payouts-in-uk-and-eu-through-moonpay-partnership/
Kraken Dismisses CFO as IPO Preparations Continue

Crypto exchange Kraken has dismissed Chief Financial Officer Stephanie Lemmerman as the company advances plans to go public in the United States. According to a Feb. 10 report from CoinDesk, Lemmerman has moved into a strategic advisory role after serving roughly 16 months in the position.
Sources cited in the report said Robert Moore, previously Kraken’s vice president of business expansion, has assumed chief financial responsibilities and is listed as deputy CFO on the company’s website. The leadership change comes as Kraken prepares for an IPO after confidentially filing in November, about a year after completing an $800 million funding round that valued the firm at $20 billion.
Kraken joins a growing list of crypto infrastructure firms pursuing public listings as institutional interest shifts toward custody, compliance, and trading infrastructure businesses.
Full Story:
https://www.triana.media/kraken-dismisses-cfo-as-ipo-preparations-continue/

Binance founder CZ said he is less confident in Bitcoin’s supercycle thesis as prices slide and accusations of Binance-driven FUD resurface.

Changpeng “CZ” Zhao is dialing back his confidence in Bitcoin’s long-hyped supercycle thesis as prices slide and parts of the crypto community point fingers at Binance for recent market turmoil.
Speaking in a Broadcast on Binance Square earlier this month, Zhao said he has become “less confident” that Bitcoin is entering a supercycle, a theory that suggests the asset could break free from its historic four-year halving-driven pattern.
“A couple of weeks ago I was pretty positive about the bitcoin super cycle, but right now, given all the FUD and all the emotions that have been stirred up in the community, I’m less confident about it now, to be frank,” Zhao said in the broadcast.
Bitcoin has fallen sharply in recent days, dropping more than 10% over the past week and slipping below the closely watched $80,000 level. The sell-off has fueled renewed fears of a broader crypto downturn, with traders bracing for heightened volatility and potential liquidation-driven moves.
Total Crypto Market Cap | 1D
Zhao said global geopolitical uncertainty and growing market anxiety are compounding the pressure.
“The more FUD you kick up and the more you get the community all riled up, it does have negative effects,” he said, adding that the current environment makes near-term price direction difficult to predict. While Zhao said a supercycle remains possible, he put the odds at roughly 50%.
The comments come as Binance faces renewed scrutiny over its alleged role in October’s crypto flash crash, which triggered one of the largest liquidation cascades in the market’s history. Around $19 billion in leveraged positions were wiped out during the episode, leaving a lasting impact on liquidity.
Several industry figures have publicly questioned Binance’s involvement.
Ark Invest CEO Cathie Wood attributed recent Bitcoin weakness to what she described as a Binance software glitch, while OKX founder Star Xu suggested that a Binance-linked stablecoin yield campaign helped trigger the liquidation cascade and caused “real and lasting damage to the industry.”
Zhao has pushed back forcefully against those claims. In a post on X this week (https://x.com/cz_binance/status/2018389099883680254), he dismissed what he called “pretty imaginative FUD” accusing him and Binance of intentionally dumping Bitcoin to spark the sell-off.
He denied reports that Binance sold $1 billion worth of BTC, saying the funds in question belonged to users trading on the platform. He also addressed speculation that his comments on the supercycle had single-handedly derailed long-term bullish sentiment.
"I said 'I am less confident" than before... That's all," Zhao wrote, referring to his remarks about being less confident. “I assume I would also have the power to snap it back then?”
Zhao also defended Binance’s plan to convert its $1 billion Secure Asset Fund for Users from stablecoins into Bitcoin over a 30-day period, rejecting claims that the slow execution was evidence of market manipulation.
"Also, you think $1b over 30 days is going to make a difference for BTC's $1.7 trillion market cap? That's 1/1700/30 = ... anyway, you do the math. It's a gesture. Will it help with confidence, your call."