Bitcoin-Native Defi Protocol Liquidium has passed a major governance proposal introducing a new staking model related to the platform’s revenues.
Protocol’s native token LIQ has risen more than 73.3% since the proposal was approved earlier this week. Based on Coingecko data, it was trading at around $0.25 at press time.
Liquidium introduces staking
On May 13, the Liquidium Foundation confirmed that LIP-12 was passed with full community support, telling us a key step in developing the protocol.
LIP-12 introduces a staking mechanism that allows LIQ holders to earn rewards directly linked to the platform’s revenue.
In the new model, users can wager the liq token and receive Sliq, a liquid staking derivative that represents the share of the staking pool.
As part of the reward mechanism, 30% of the protocol’s daily revenue is allocated to market repurchase of LIQ from central exchanges. Purchased tokens will be distributed to stakers. The remaining 70% of revenue covers operating costs.
The initiative is designed to enhance long-term token retention and generate consistent demand through automated buybacks. The foundation noted that development is already underway and the launch date will be announced soon.
New Identity
In addition to the staking initiative, Liquidium has been rebranded from Liquidiumfi to Liquidiumwtf.
The protocol explained that the updated names reflect the embrace of Bitcoin’s experimental frontier platform, including ordinal numbers and memocoin culture.
Liquidium CTO Peter Giammanco said the brand reflects the platform’s journey in building debt tools in Bitcoin. He highlighted the team’s efforts to simplify complex technologies while maintaining the core spirit of the Bitcoin network.
He added:
“The goal was to constantly change complexity clearly and incorporate what I find impossible with Bitcoin and feel intuitively.
Despite the new branding, Liquidium will continue to support existing peer-to-peer Bitcoin lending apps. This update also introduces a reward feature that allows users to earn 30% of the points of referral users from the first five loans.
Meanwhile, the team is planning to debut a new product called Liquidium.fi at the upcoming Bitcoin 2025 conference. This latest product promotes the message of “borrowing across borders” and presents a broader vision of expanding reach beyond our current user base.