World Liberty Financial’s (WLFI) community has opened a new front in the stablecoin wars, floating a plan to tap part of the project’s unlocked treasury to accelerate adoption of its USD1 dollar‑pegged stablecoin.
The proposal argues that directing a slice of WLFI’s token reserves into incentives and integrations would turn USD1 into a stronger anchor for the wider ecosystem.
Details of the WLFI Treasury-Allocation Proposal
The plan, titled “Utilize Unlocked $WLFI Treasury Holdings to Support the Growth of USD1,” went live on the World Liberty Financial governance forum on December 16 and runs as an advisory governance vote. It recommends using less than 5% of the protocol’s unlocked WLFI treasury to fund USD1‑linked incentives across selected CeFi and DeFi partners, while leaving the bulk of treasury tokens untouched.
World Liberty’s documentation notes that roughly 19.96 billion WLFI tokens sit in treasury reserves, valued near 2.4 billion dollars at current prices, so a 5% unlock would free up around 120 million dollars’ worth of tokens for the program.
Poll options ask holders to approve the sub‑5% allocation, reject any use of unlocked tokens for USD1 or abstain, with any future expansions of the program requiring additional votes.
Why USD1 Adoption is Central to the Plan
The proposal’s authors point to USD1’s rapid early growth, around 3 billion dollars in TVL in roughly six months, and a string of recent moves by the team: 10 million dollars of WLFI Coin buybacks using USD1, new spot pairs on Binance and integrations across both CeFi and DeFi venues.
In their framing, USD1 is the flagship product, while WLFI functions as the governance and coordination layer; strengthening the stablecoin’s footprint should, in theory, lift demand for WLFI‑governed services and programs.
Incentives would likely include staking rewards, transaction bonuses and grants or liquidity support for projects that integrate USD1, particularly on high‑profile exchanges and DeFi protocols. The forum post commits to disclosing all partner programs where WLFI incentives flow and to hosting those details on the project’s website and governance channels to keep token holders informed.
The move is part of a broader pattern in stablecoins, where treasury management becomes a primary growth lever. Commentaries note that using a modest slice of a large treasury to deepen USD1 liquidity and usage can make the token more competitive against incumbents, but they also warn that large unlocks require strong governance to avoid diluting long‑term holders.
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