Liquidium, a Bitcoin-native DeFi protocol, has recently made a significant development with the approval of a major governance proposal. The proposal introduces a new staking model tied to the platform’s revenue, leading to a surge in the protocol’s native token, LIQ, which has seen a 73.3% increase in value since the proposal was passed.
The new staking mechanism, known as LIP-12, allows LIQ holders to stake their tokens and earn rewards directly linked to the platform’s revenue. Users can stake LIQ tokens to receive sLIQ, a liquid staking derivative representing their share of the staking pool. A portion of the protocol’s daily revenue, specifically 30%, will be used for market buybacks of LIQ from centralized exchanges, with the purchased tokens being distributed to stakers. The remaining 70% of revenue will cover operational costs.
This initiative aims to incentivize long-term token holding and create consistent demand through automated buybacks. The Liquidium Foundation has confirmed that development is already in progress, and a launch date for the staking mechanism will be announced soon.
In addition to the staking model, Liquidium has undergone a rebranding, changing its name from LiquidiumFi to LiquidiumWTF. The new identity reflects the platform’s commitment to exploring Bitcoin’s experimental frontiers, including Ordinals and memecoin culture. Liquidium CTO, Peter Giammanco, emphasized the team’s dedication to simplifying complex technologies while upholding the core principles of the Bitcoin network.
Despite the rebrand, Liquidium will continue to support its peer-to-peer Bitcoin lending app and has introduced a new reward feature for users who refer others to the platform. Furthermore, the team is gearing up to launch a new product, Liquidium.fi, at the upcoming Bitcoin 2025 conference. The product’s tagline, “Borrow Beyond Borders,” hints at Liquidium’s ambition to expand its user base and reach new heights in the DeFi space.
Overall, Liquidium’s recent developments signal a promising future for the protocol as it continues to innovate and grow within the Bitcoin ecosystem.