WLFI Holders Vote on $120M Allocation for USD1 Growth

• World Liberty Financial proposed using under 5% of its unlocked WLFI treasury.
• The plan is to boost the adoption of USD1.
• Incentives for selected CeFi and DeFi partners integrating USD1 were proposed.

World Liberty Financial has submitted a new governance proposal that would allow the protocol to use a portion of its unlocked WLFI treasury to support the growth of its USD1 stablecoin.

The proposal is now live for community voting and focuses on expanding USD1 adoption across both centralized and decentralized finance platforms.

The team said the move is designed to strengthen partnerships, increase usage, and expand economic activity across the broader World Liberty Financial ecosystem.

Proposal Outlines Limited Treasury Usage

According to the proposal, World Liberty Financial plans to allocate less than 5% of its unlocked WLFI treasury holdings toward USD1 growth initiatives.

The funds would be used as incentives for selected high profile CeFi and DeFi partners that support USD1 integrations and use cases.

The proposal states that all partners receiving WLFI incentives will be clearly disclosed on the project’s website and through official online communications.

Any future use of WLFI treasury funds for USD1 growth would require additional governance votes.

Describing USD1 as one of the fastest growing stablecoins in the market, World Liberty Financial revealed that it reached roughly $3 billion in total value locked within six months.

Interestingly, USD1 is the flagship product of the ecosystem, while WLFI functions as the governance and coordination layer for all current and future products.

The team believes that wider USD1 adoption will increase demand for WLFI governed services, integrations, liquidity programs, and ecosystem initiatives.

Impact for WLFI holders

The proposal argued that increasing USD1 circulation strengthens the overall network governed by WLFI holders. As more users, institutions, and blockchains integrate USD1, the scale and influence of the World Liberty Financial ecosystem would eventually grow massive.

WLFI holders would gain governance authority over a larger network, including decisions related to incentives, product expansion, and cross chain strategy. 

It is important to note that the proposal is advisory in nature and offers three voting options, i.e., approve the use of <5% of unlocked WLFI for USD1 growth, reject the plan and keep the tokens in treasury, or abstain. 

This proposal follows a recent community approved initiative that activated part of the treasury for WLFI token buybacks. Over a three week period, the protocol used USD1 to purchase $10 million worth of WLFI tokens from the open market.

Related: World Liberty Financial (WLFI) Price Prediction: WLFI Eyes Breakout as Market Interest Cools