Bitcoin-native DeFi protocol Liquidium has passed a major governance proposal introducing a new staking model tied to the platform revenue.

The protocol’s native token LIQ has climbed over 73.3% since the proposal was approved earlier this week. It was trading at roughly $0.25 as of press time, based on CoinGecko data.

Liquidium introduces staking

On May 13, the Liquidium Foundation confirmed that LIP-12 passed with full community support, marking a significant step in the protocol’s development.

LIP-12 introduces a staking mechanism that enables LIQ holders to earn rewards tied directly to the platform’s revenue.

Under the new model, users can stake LIQ tokens to receive sLIQ, a liquid staking derivative representing their share of the staking pool.

As part of the reward mechanism, 30% of the protocol’s daily revenue will be allocated for market buybacks of LIQ from centralized exchanges. The purchased tokens will then be distributed to stakers. The remaining 70% of revenue will cover operational costs.

The initiative is designed to strengthen long-term token holding and generate consistent demand through automated buybacks. The foundation noted that development is already underway, and a launch date will be announced soon.

New identity

Alongside the staking initiative, Liquidium has rebranded from LiquidiumFi to LiquidiumWTF.

The protocol explained that the updated name reflects the platform’s embrace of Bitcoin’s experimental frontiers, including Ordinals and memecoin culture.

Liquidium CTO Peter Giammanco said the rebrand reflects the platform’s journey in building DeFi tools on Bitcoin. He emphasized the team’s effort to simplify complex technologies while maintaining the core ethos of the Bitcoin network.

He added:

“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.”

Despite the new branding, Liquidium will continue to support its existing peer-to-peer Bitcoin lending app. The update also introduces a reward feature that allows users to earn 30% of a referred user’s points from their first five loans.

Meanwhile, the team is set to debut a new product called Liquidium.fi at the upcoming Bitcoin 2025 conference. This latest offering will promote the message “Borrow Beyond Borders,” signaling a broader vision of expanding its reach beyond its current user base.

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President Donald Trump reaffirmed his commitment to supporting cryptocurrency and making America the “Bitcoin superpower” at the first White House crypto summit on March 7.

Trump reaffirmed his pledge to reverse restrictive policies and position the US as a global leader in digital assets. He stated that his executive order establishing a Bitcoin reserve and a digital assets stockpile fulfills the promises he made last year.

He also lamented the fact that the government had sold considerable amounts of the Bitcoin it once held and said his administration would ensure the federal government can never sell BTC again.

He stated:

“Everybody knows, never sell your Bitcoin.”

Trump further stated that the Treasury is working on developing methods to accumulate more Bitcoin without impacting taxpayers.’

Trump also compared the crypto race to artificial intelligence, emphasizing the need for American leadership.

“It’s important we stay in front of this one. We should be in the lead, just like we are in AI.”

Ending the war on crypto

Trump criticized the Biden administration for waging what he called a “war on crypto” and announced the formal end of Operation Chokepoint 2.0, a policy seen as restricting financial services for crypto firms.

He blasted regulators and Biden, stating that “people really suffered” under their restrictive and harmful policies and criticized them for only easing their stance when election season approached.

He said:

“In the end, they came around — but only for votes.”

Meanwhile, US Treasury secretary Scott Bessent, who is now in charge of managing the Bitcoin reserve, also criticized Biden’s approach to the industry. He said:

“Biden did nothing but punish tech innovators in the US.”

Bessent added that the Trump administration is working with the IRS to rescind previous guidance that has stifled the industry and working with lawmakers to develop a comprehensive regulatory framework for crypto and stablecoins.

He also stated that the US intends to use stablecoins to ensure the US dollar maintains its dominance as the world’s reserve currency.

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