If you’ve been tracking the stablecoin race, World Liberty Financial (WLFI) is making a bold move.
The DeFi firm, linked to Donald Trump’s family, just proposed using part of its WLFI token treasury to boost adoption of its dollar-pegged stablecoin, USD1. This comes as competition in the $300 billion stablecoin market heats up.
Here’s the play:
- Targeted Treasury Deployment: WLFI wants to use less than 5% of its unlocked WLFI holdings to fund incentives and partnerships that drive USD1 usage across CeFi and DeFi platforms.
- Transparency First: Any deployment of tokens would be publicly disclosed, with partner details shared on the WLFI website and in official communications.
- Ecosystem Growth Strategy: The proposal stresses that this isn’t about changing how USD1 works. The stablecoin itself stays the same; the WLFI tokens are just a tool to expand adoption, liquidity, and integrations.
Why now?
USD1 has already reached nearly $3 billion in total value locked in just six months. Growth has been fueled by on-chain trading and integrations with major exchanges like Binance. WLFI argues that incentives are essential to maintain momentum in a crowded stablecoin landscape, where every token wants a slice of users, platforms, and liquidity.
The proposal also highlights the governance angle:
“WLFI token holders gain governance power over a larger, more valuable network, including decisions around incentives, product expansion, and cross-chain strategy.”
In other words, more USD1 adoption = more WLFI utility = more governance influence.
The next step? Token holders are asked to weigh in on the forum ahead of a formal vote. Options: approve the proposal, reject it and leave tokens in the treasury, or abstain.
Bottom line: World Liberty Financial is putting its money where its mouth is, using treasury funds strategically to grow USD1’s reach without changing its mechanics. If approved, it’s a clear signal that the team is serious about competing in the stablecoin space and building a broader DeFi ecosystem around USD1.
