World Liberty Financial has submitted a governance proposal to allocate 5% of its WLFI token treasury to support growth of its USD1 stablecoin. The proposal outlines plans to use the funds for strategic partnerships, liquidity incentives, and ecosystem programs designed to expand USD1 supply and usage. If approved, the allocation would represent roughly $120 million based on current token prices.
The project argues that broader USD1 adoption would strengthen demand for WLFI-governed services and integrations. USD1 currently ranks as the seventh-largest US dollar-pegged stablecoin, competing with dominant issuers such as Tether and Circle in an increasingly crowded market. The team said targeted CeFi and DeFi partnerships could help USD1 maintain relevance amid rising institutional and retail stablecoin activity.
The proposal comes as USD1 continues expanding across multiple blockchains and exploring consumer-facing products. However, the stablecoin has also drawn scrutiny over transparency and its political associations, adding regulatory and reputational considerations for governance participants reviewing the plan.
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