Liquidium (LIQ) Passes LIP-12 Proposal Introducing a New Staking Model Tied to Platform Revenue

The protocol's native token LIQ has climbed over 73.3% since the proposal was approved earlier this week.

Bitcoin-native DeFi protocol Liquidium has passed a major governance proposal that will introduce 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 protocol’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 highlighted the team’s effort to simplify complex technologies while maintaining the core ethos of the Bitcoin network.

“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,” Giammanco added.

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.