A significant governance proposal has been approved by the Bitcoin-native DeFi protocol Liquidium, introducing a revamped staking model linked to the platform’s revenue stream.
A surge of 69% in the LIQ token was driven by Liquidium’s rebranding efforts, as rewards under the new staking model were linked to the platform’s revenue.
An increase of more than 73.3% has been recorded in the protocol’s native token, LIQ, since the approval of the proposal earlier this week. According to data from CoinGecko, it was being traded at approximately $0.25 at the time of reporting.
Liquidium Launches New Staking Feature
It was confirmed by the Liquidium Foundation on May 13 that LIP-12 had been passed with unanimous support from the community, representing a major milestone in the protocol’s progression.
A staking mechanism has been introduced through LIP-12, allowing LIQ holders to receive rewards that are directly linked to the platform’s revenue.
Under the updated model, LIQ tokens can be staked by users in exchange for sLIQ, a liquid staking derivative that represents their portion of the staking pool.
As a component of the reward mechanism, 30% of the protocol’s daily revenue is set to be allocated toward market buybacks of LIQ tokens from centralized exchanges. These acquired tokens will subsequently be distributed to stakers. The remaining 70% of the revenue will be directed toward covering operational expenses.
The initiative has been structured to encourage long-term token retention and to create sustained demand via automated buybacks. It was noted by the foundation that development is currently in progress, with an official launch date expected to be revealed shortly.
Unveiling a New Identity
In conjunction with the staking initiative, a rebranding has been carried out by Liquidium, changing its name from LiquidiumFi to LiquidiumWTF.
It was explained by the protocol that the revised name has been intended to represent the platform’s alignment with Bitcoin’s experimental frontiers, such as Ordinals and the memecoin culture.
The rebrand was described by Liquidium CTO Peter Giammanco as a reflection of the platform’s path in developing DeFi tools on the Bitcoin network. He highlighted that significant effort has been made by the team to simplify intricate technologies while preserving the fundamental principles of Bitcoin.
The goal has always been to turn complexity into clarity, to take what feels impossible on Bitcoin and make it feel intuitive. That ethos is baked into everything we do.
He added:
Although the new branding has been adopted, ongoing support for Liquidium’s existing peer-to-peer Bitcoin lending application will be maintained. Additionally, the update has introduced a rewards feature through which users can earn 30% of the points accumulated by referred individuals from their initial five loans.
In the meantime, a new product named Liquidium.fi is scheduled to be unveiled by the team at the forthcoming Bitcoin 2025 conference. The launch will be used to convey the message “Borrow Beyond Borders,” reflecting an expanded vision aimed at extending the platform’s reach beyond its existing user community.
