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The Trump family-backed World Liberty Financial has proposed allocating 5% of its WLFI token treasury to accelerate the growth of its US dollar-pegged stablecoin, USD1, amid rising competition in the stablecoin space. The proposal appeared on Wednesday on the World Liberty Financial governance forum, where the team said expanding USD1 circulation remains critical to staying competitive in a crowded stablecoin market.
World Liberty Financial said the proposed treasury deployment would support USD1 adoption through a mix of centralized finance and decentralized finance partnerships.
The team stated that broader circulation would help embed USD1 across exchanges, protocols, and financial platforms that already support stablecoin activity.
According to the proposal, USD1 ranks among the world’s fastest-growing stablecoins, having reached about $3 billion in total value locked within six months. The company linked that growth to strong community participation across trading use cases and several large partnerships already active in the ecosystem.
World Liberty Financial said it plans to use a small portion of unlocked WLFI tokens to support USD1 use cases across select high-profile CeFi and DeFi partners. The company also said it will clearly identify all partners receiving WLFI incentives on its website and in its written online communications.
An open poll on the company’s website revealed mixed reactions among WLFI investors regarding the proposed treasury deployment. One investor supporting the plan said allocating 5% of unlocked WLFI tokens offers a way to reward partners building products around USD1.
That investor also said the proposal could incentivize development of new products that expand the USD1 ecosystem across trading and liquidity venues. They recommended allocating funds toward decentralized exchanges on Ethereum and Solana, alongside centralized exchanges.
The investor further suggested acquiring tokens such as DOLO and BLOCK on Ethereum, as well as AOL, BURGER, US, DREAM, and VALOR on Solana.
They also proposed investing in BONK and BonkFun USD1-paired tokens, including $1Coin and SPSC, to increase ecosystem activity.
Despite supportive voices, many poll participants opposed allocating 5% of WLFI's treasury holdings to USD1 growth. Those participants instead recommended unlocking and holding at least 80% of the total WLFI token supply within the treasury.
World Liberty Financial said an additional USD1 supply would support integrations with select high-profile CeFi and DeFi partnerships. The company framed this strategy as a way to deepen USD1 integration across platforms that already interact with World Liberty Financial infrastructure.
“As USD1 grows, more users, platforms, institutions, and chains integrate with World Liberty Financial infrastructure,” the team wrote in the proposal. The proposal added that higher USD1 circulation would increase demand for WLFI-governed services, including integrations, liquidity incentives, and ecosystem programs.
The project described USD1 as a central pillar of its ecosystem and positioned stablecoin adoption as a catalyst for broader network effects. “More USD1 in circulation leads to more demand for WLFI-governed services,” the proposal stated, outlining a value capture loop for WLFI holders.
Following a successful community vote, WLFI activated part of its treasury to support a token buyback initiative linked to USD1. The company executed a $10 million WLFI buyback over three weeks using USD1 to purchase tokens directly from the open market.
Meanwhile, Disruption Banking reported that DWF Labs secretly supported USD1 by purchasing hundreds of millions of dollars worth of the stablecoin. The analysis found that DWF Labs funneled over $300 million of engineered liquidity through WLFI’s TokenGovernor contract using anonymous wallets.
As debate continues, the proposal places governance decisions at the center of USD1’s expansion strategy, raising one question for WLFI holders: how should treasury resources balance growth ambitions with long-term token control?
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World Liberty Financial has proposed using 5% of its WLFI token treasury to expand USD1 stablecoin adoption through CeFi and DeFi partnerships. The plan has sparked community debate, while recent buybacks and external liquidity activity continue shaping USD1’s growth path. Token holders now face a governance decision that could influence the ecosystem’s direction.
