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.
Liquidium’s rebranding efforts drove a 69% surge in the LIQ token, as the platform linked rewards under its new staking model to generated revenue.
The protocol’s native token, LIQ, has surged more than 73.3% since the proposal’s approval earlier this week. According to CoinGecko data, it was trading at approximately $0.25 at the time of reporting.
Liquidium Launches New Staking Feature
The Liquidium Foundation confirmed on May 13 that the community had unanimously passed LIP-12, marking a major milestone in the protocol’s progression.
LIP-12 introduced a staking mechanism that enables LIQ holders to earn rewards directly tied to the platform’s revenue.
Under the updated model, users stake their LIQ tokens to receive sLIQ, a liquid staking derivative that reflects their share of the staking pool.
As part of the reward mechanism, the protocol will allocate 30% of its daily revenue to buying back LIQ tokens from centralized exchanges. It will then distribute these tokens to stakers, while using the remaining 70% to cover operational expenses.
The initiative aims to promote long-term token retention and generate sustained demand through automated buybacks. The foundation noted that development is underway and will announce the official launch date soon.
Unveiling a New Identity
In conjunction with the staking initiative, Liquidium rebranded itself from LiquidiumFi to LiquidiumWTF.
The protocol explained that the revised name reflects the platform’s alignment with Bitcoin’s experimental frontiers, including Ordinals and the memecoin culture.
Liquidium CTO Peter Giammanco described the rebrand as a reflection of the platform’s journey in building DeFi tools on the Bitcoin network. He emphasized that the team has worked hard to simplify complex technologies while upholding Bitcoin’s core principles.
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 Liquidium has adopted the new branding, it will continue to support its existing peer-to-peer Bitcoin lending application. 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, the team plans to unveil a new product named Liquidium.fi at the upcoming Bitcoin 2025 conference. The launch will promote the message “Borrow Beyond Borders,” reflecting the platform’s broader vision to reach users beyond its current community.
