Proposal targets broader adoption as competition intensifies in the stablecoin market
World Liberty Financial,, has introduced a governance proposal to allocate 5% of its WLFI token treasury toward expanding adoption of its USD-pegged stablecoin, USD1. The move reflects growing competition among stablecoin issuers and a strategic push to strengthen the project’s ecosystem.
Treasury Strategy to Scale USD1
According to the proposal, approximately $120 million worth of WLFI tokens could be deployed to increase the circulating supply of USD1. The funds would be used to support high-profile CeFi and DeFi partnerships, liquidity programs, and integrations designed to boost real-world and on-chain usage.
The team emphasized that greater USD1 circulation would drive demand for services governed by WLFI token holders, reinforcing network effects and long-term value creation across the ecosystem.
WLFI holders are currently voting on the proposal, with options to support, reject, or abstain. Early sentiment appears divided, with opposition slightly outweighing support, highlighting community debate around treasury unlocks and dilution risks.
Launched in March, USD1 has reached a market capitalization of $2.74 billion, ranking it among the top USD-backed stablecoins globally. Despite this growth, it still trails competitors, including PayPal’s PYUSD, which maintains a significantly larger market cap.
If approved, the 5% treasury deployment could accelerate USD1 adoption, but sustained growth will depend on execution, transparency, and the project’s ability to compete in an increasingly crowded stablecoin landscape.
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