World Liberty Financial proposed on Sunday that it use part of its digital asset portfolio to promote the adoption of the USD1-linked stablecoin.
The governance proposal, published on December 28, 2024, seeks permission to allocate less than 5% of the project's unlocked WLFI Token to incentive programs. The goal of this program is to find partners in the cryptocurrency sector to increase the use of this USD- Peg asset.
The WLFI faces early opposition over its Treasury spending plans.
World Liberty Financial believes this is a driving force for its entire ecosystem.
This proposal argues that the widespread use of USD1 will help the WLFI system expand its reach, increase utility, and boost economic activity by encouraging more users, platforms, organizations, and other chain to integrate with the WLFI community-managed infrastructure.
“The increased adoption of USD1 will create more opportunities to add value within the WLFI ecosystem, benefiting WLFI’s governance initiatives and enhancing the long-term utility of the WLFI Token ,” the proposal emphasizes .
In addition,the project linked to Trump also argues that more spending is necessary to help USD1 become more competitive with other stablecoins on the market.
Since its launch about six months ago, USD1 has reached a market Capital of $3.2 billion. Currently, it is the seventh largest stablecoin globally, behind PayPal's PYUSD but surpassing Ripple's RLUSD, according to data from defillama.
Meanwhile, spending money to boost the growth of USD1 is similar to the strategy being implemented elsewhere in the market.
Binance recently introduced an incentive program allowing users to earn interest rates of up to 20% per year on holdings of USD1, with a maximum limit of USD 50,000 per retail investor. World Liberty Financial wants to adopt this model by using its own project Capital to fund partners developing similar yields.
However, the plan initially met with skepticism from the voting community. Preliminary data showed that 67.7% of those who voted on Sunday afternoon opposed the measure. Voting is scheduled to close on January 4, 2026.
Although there are currently differing opinions, the proposal is still under XEM , and major investors may express their views before the deadline.
The project states that all partners receiving incentives under the new program will be publicly identified to ensure transparency with the community.
