World Liberty Financial has introduced a new governance proposal that seeks to allocate up to five percent of its unlocked WLFI treasury to promote the growth of its flagship stablecoin, USD1. The plan aims to use treasury incentives to strengthen partnerships and drive adoption across centralized and decentralized finance markets.
The proposal was published on the project’s governance forum earlier this week and is now open for community discussion and voting by WLFI token holders.
🚨 GOVERNANCE UPDATE 🚨
— WLFI (@worldlibertyfi) December 17, 2025
A new proposal is now LIVE for voting from the community: using a portion of the unlocked WLFI treasury as incentives to fuel USD1 adoption.
Over the last 3 weeks alone, WLFI has:
• Bought back $10,000,000 of WLFI using USD1
• Secured major spot…
Details of the treasury proposal
According to the governance post, the World Liberty Financial team wants to “actively utilize a limited allocation of its unlocked treasury to support the growth of USD1.” The plan would focus on strategic partnerships with both centralized finance (CeFi) and decentralized finance (DeFi) platforms to encourage USD1 usage and liquidity.
USD1 is described as the first flagship product of the World Liberty Financial ecosystem. The WLFI token operates as the governance and coordination layer that connects all current and future products.
“The success of USD1 directly strengthens WLFI because USD1 adoption expands the overall footprint, utility, and economic activity of the entire WLFI ecosystem,” the team wrote in the proposal.
If the proposal passes, World Liberty Financial would deploy less than five percent of its unlocked treasury holdings to create incentives for USD1 integration and transactional use.
Allocation size and potential financial impact
World Liberty Financial’s total WLFI supply designates roughly 19.96 billion tokens to the treasury, according to Webopedia. Based on current market prices, five percent of that allocation equals approximately $120 million.
The plan comes shortly after the project’s governance community approved a separate initiative that used treasury liquidity fees for buybacks and token burns. The team noted that these actions demonstrated confidence in WLFI’s long-term value while reinforcing demand within the ecosystem.
Reasons for supporting USD1 growth
Token terminal data shows USD1 has emerged as one of the fastest-growing stablecoins globally, exceeding $2.6 billion in total value locked within six months of launch. According to the proposal, this growth resulted from strong community support across trading use cases and multiple large-scale partnerships.
The team views treasury incentives as an essential tool for sustaining that growth. It stated that more USD1 circulation leads to stronger demand for WLFI-governed services and programs, including liquidity incentives and ecosystem integrations.
“Increased USD1 adoption creates more opportunities for value capture across the WLFI ecosystem, which accrues to the benefit of WLFI-governed initiatives and long-term token utility,” the proposal reads.
The proposal also argues that using treasury funds to expand USD1 adoption should be seen as a long-term growth catalyst rather than a short-term expenditure.
Focus on transparency and partner disclosure
World Liberty Financial has pledged to maintain transparency in deploying treasury funds. The proposal confirms that every partnership receiving WLFI incentives will be publicly disclosed on the project’s official website and in written online communications.
This policy aims to ensure accountability and trust in how treasury resources are managed. It also allows WLFI holders to monitor performance and assess whether funded initiatives contribute meaningfully to USD1 adoption and overall ecosystem growth.
Broader implications for the WLFI ecosystem
The team behind the proposal describes USD1’s success as vital for the entire network. Expansion of USD1’s market share could strengthen the WLFI governance framework, giving token holders greater influence over a growing ecosystem.
As USD1 integrates with more platforms, institutions, and blockchain networks, WLFI token holders could gain governance power over a larger economic system. This includes decision-making related to incentives, cross-chain expansion, and future product launches.
World Liberty Financial has already rolled out the USD1 stablecoin across Ethereum, BNB Chain, Solana, TRON, Aptos, and AB Chain. The project also plans to introduce new products, including a crypto-linked debit card that connects with Apple Pay.
However, USD1’s growth has drawn scrutiny due to its reported links with former U.S. President Donald Trump’s family. Concerns have been raised about offshore holdings and the absence of a recent reserve report since July.
Active governance vote and next steps
The current governance vote offers three outcomes: approval to use up to five percent of the unlocked treasury for USD1 growth, rejection of the proposal, or abstention.
Forum discussions and community feedback will remain open until the official voting window closes. If approved, the treasury allocation would be implemented in stages, with ongoing oversight from WLFI governance members. The World Liberty team emphasized that any future increases in treasury utilization for USD1 development would require separate community approval.
World Liberty Financial regards the proposal as a strategic move to strengthen USD1’s position in a competitive stablecoin market and enhance the influence of WLFI holders over the ecosystem’s future direction.
Gunel Ismayilova
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource, and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice. HODL FM strongly recommends contacting a qualified industry professional.
