World Liberty Financial, the crypto initiative backed by the Trump family, has introduced a significant governance proposal to utilize 5% of its WLFI token treasury. The goal is to aggressively expand the supply and adoption of its stablecoin, USD1, in an increasingly crowded market.
Strategic Expansion and Ecosystem Value
The proposal, shared on the project’s governance forum this Wednesday, suggests that unlocking these funds—valued at approximately $120 million—will allow the team to:
- Boost Liquidity: Increase the circulating supply of USD1 to remain competitive against established rivals.
- Deepen Partnerships: Integrate USD1 into high-profile Centralized Finance (CeFi) and Decentralized Finance (DeFi) platforms.
- Drive Ecosystem Demand: The team believes that a more widely used stablecoin will naturally increase the utility and “value capture” for WLFI token holders, as more services and integrations will rely on the WLFI-governed infrastructure.
Treasury Breakdown
Since the token’s launch in September, World Liberty Financial has maintained a treasury of nearly 19.96 billion WLFI tokens.
- Total Treasury Value: Approximately $2.4 billion at current market rates.
- Proposed Unlock: The 5% allocation represents a $120 million war chest dedicated to growth.
While the voting process is currently live, the community’s response has been mixed. Early indications show that “against” votes are slightly leading “for” votes, highlighting a cautious approach from some stakeholders regarding treasury management.
The Competitive Landscape
Since its launch in March, USD1 has reached a market capitalization of $2.74 billion, securing its spot as the seventh-largest dollar-pegged stablecoin. However, the path to the top is steep. To move up in the rankings, USD1 must close a $1.1 billion gap to overtake its closest competitor, PayPal’s PYUSD, which currently holds the sixth position.
The WLF team views this treasury deployment as a vital step in bridging that gap and cementing the network’s influence across multiple blockchain ecosystems.
