The Trump family-backed project posted a governance proposal Wednesday suggesting treasury allocation to grow USD1 supply amid an increasingly competitive stablecoin landscape
WLFI News
World Liberty Financial proposes unlocking 5% of its token treasury, worth $120 million, to boost stablecoin adoption and compete with established market players.
The Trump family-backed project posted a governance proposal Wednesday suggesting treasury allocation to grow USD1 supply amid an increasingly competitive stablecoin landscape. Additional supply would support use cases across select high-profile centralized and decentralized finance partnerships.
Increased adoption creates more value capture opportunities within the WLFI ecosystem, the team stated. Growing USD1 circulation drives demand for WLFI-governed services, integrations, liquidity incentives, and ecosystem programs as more users, platforms, institutions, and chains integrate with World Liberty Financial infrastructure.
WLFI token launched on exchanges in September with 19.96 billion tokens allocated to the treasury from total supply. At current prices, the treasury holds nearly $2.4 billion value, making 5% unlocked equivalent to approximately $120 million.
The governance forum presents three voting options: for, against, or abstain. Community reactions remain mixed, with against votes slightly edging supporters. USD1 stablecoin launched in March and holds a $2.74 billion market capitalization, ranking seventh among dollar-pegged stablecoins.
The treasury unlock may accelerate asset growth, though significant catching up remains necessary. PYUSD from PayPal, which holds sixth place, maintains a $1.1 billion larger market cap than USD1.
World Liberty Financial emphasizes that single balance sheet metrics cannot reflect whether companies operate legitimate businesses. The team argues more USD1 circulation leads to increased scale and influence for networks governed by WLFI holders.
Platform integrations and partnerships depend on sufficient stablecoin liquidity. The proposal aims to establish USD1 as viable alternative to dominant DeFi stablecoins through strategic treasury deployment and ecosystem expansion initiatives.
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