World Liberty Financial proposes using WLFI Treasury to boost USD1

The World Liberty Financial (WLFI) community has proposed using a portion of its unlocked WLFI treasury as incentives to accelerate the adoption of the USD1 stablecoin, estimated at around $120 million.

12/18/20252 min read

Use WLFI to restructure USD1.

The World Liberty Financial (WLFI) community has proposed using a portion of its unmined WLFI treasury as an incentive to promote the adoption of USD1 , the protocol's native stablecoin. This initiative reflects the growing awareness that, in the context of today's fiercely competitive stablecoin market , liquidity and adoption need to be proactively promoted, not merely initiated.

  • Treasury Allocation : 5% of the unlocked WLFI treasury ( from 19.96 billion tokens in reserve, valued at approximately $2.4 billion ) – approximately $120 million.

  • Expected Benefits : " The larger the USD1 value, the more users, platforms , organizations, and chains will integrate with the World Liberty Financial infrastructure – managed by WLFI holders." This creates demand for WLFI-governed services, liquidity incentives, and ecosystem programs.

Instead of passively holding treasury assets, the community is signaling a shift toward targeted deployment of capital to stimulate real economic activity around USD1.

From Trump-Backed to Top 7 Stablecoins

World Liberty Financial (WLFI), launching its token in September 2025, has a treasury of nearly $2.4 billion from 19.96 billion WLFI tokens in reserve. USD1 – a USD-pegged stablecoin managed by BitGo and backed by US Treasuries – is its flagship product, growing from zero to the top 7 in just 6 months. The project integrates the Canton Network (December 2025) to expand institutional on-chain finance.

This proposal follows previous governance votes such as the WLFI buyback/burn program and the staking program with a yield of USD1 , demonstrating that the community is actively shaping the ecosystem.

Objectives of the strategy

Although the final details are still being discussed, this proposal outlines a general use of ununlocked WLFI treasury assets to finance:

  • Liquidity incentives for DEX pools and on-chain markets support USD1.

  • Rewards for users who trade, hold, or integrate USD1.

  • Developer grants to incentivize dApps , payment platforms, and e-wallets to adopt USD1.

  • Offers for partners include merchants or platforms willing to pay in USD1.

The focus is on usage-based rewards, tailoring incentives to measurable adoption rather than speculative holdings.

Our review perspective

If approved, this proposal could reposition USD1 from a passive stablecoin into an actively promoted payment and settlement asset. This also signals that WLFI intends to compete seriously in the stablecoin market by combining community governance with a disciplined capital strategy.

More broadly, this reflects a maturational trend in DeFi protocols , as they increasingly view treasuries as strategic balance sheets, rather than just war reserves.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

Follow HCCVenture here: https://link3.to/holdcoincventure