World Liberty Financial, a digital finance project backed by the family of US President Donald Trump, has proposed using 5% of its treasury Token to expand the supply of the USD1 stablecoin, amidst increasingly fierce competition in the global stablecoin market. The proposal, posted on World Liberty Financial's governance forum mid-week, emphasizes that increasing the size of USD1 is crucial for the project to avoid falling behind its major competitors in the same segment.
According to the proposal, the additional USD1 supply will be used to expand use cases through prominent partnerships in both Centralized Finance (CeFi) and decentralized finance (DeFi). The development team believes that as USD1 is more widely integrated into different platforms, protocols, and ecosystems, World Liberty Financial will create more opportunities to “gain value” for the entire network surrounding the WLFI Governance Token .
The project also argues that as the scale of USD1 increases, so will the number of users, platforms, financial institutions, and blockchains integrating World Liberty Financial's infrastructure. This expands the reach and scale of the community-controlled WLFI network. As more USD1 circulates in the market, the demand for services, integrations, liquidation incentive programs, and ecosystem initiatives coordinated by WLFI will also increase, thereby reinforcing the Token 's central Vai .
WLFI began trading on exchanges last September. Prior to its launch, the project announced that approximately 19.96 billion WLFI tokens out of the total supply would be allocated to the treasury. At the current price, this amount of Token is worth approximately $2.4 billion, meaning unlocking 5% of the treasury is equivalent to about $120 million – a significant amount that could have a considerable impact if used appropriately.
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The governance proposal offers three voting options: support, oppose, or abstain. The vote has now been activated, although the detailed mechanism for calculating and allocating voting rights has not yet been clearly announced. Initial reactions from the community are quite mixed, with opposition slightly outnumbering support, reflecting concerns that unlocking the treasury could put short-term pressure on the WLFI Token .
