World Liberty Financial Submits Proposal To Use Some Of Unlocked WLFI Treasury For USD1 Growth

World Liberty Financial, a decentralized finance (DeFi) project with ties to the Trump family, has submitted a proposal to utilize unlocked WLFI treasury holdings to support the growth of its USD1 stablecoin.

“In order to support development and usage of USD1 in an increasingly competitive stablecoin landscape, World Liberty Financial intends to utilize a small percentage of unlocked $WLFI tokens to support USD1 use cases across select high profile CeFi & DeFi partnerships,” the team said in the Dec. 28 proposal.

USD1 Reaches $3B In TVL In 6 Months 

The World Liberty Financial team said that its USD1 stablecoin “is among the world’s fastest growing stablecoins,” with around $3 billion in total value locked (TVL). 

Top stablecoins by market cap (Source: CoinGecko)

Data from CoinGecko shows that USD1 is ranked as the seventh-largest stablecoin with a market capitalization of more than $3.2 billion. This ranks it below PYUSD, the stablecoin offered by payments giant PayPal. It also ranks USD1 one position above XAUT, the gold-backed token issued by Tether. 

The World Liberty Financial team said that USD1’s strong growth in just a few months was achieved “due to an upswell of community support across core stablecoin onchain use cases such as trading and a number of large partnerships.” 

“The team continues to arduously work to grow adoption and usage of USD1, working toward the core vision of democratizing finance and access to the dollar globally,” they added. 

USD1 Adoption Will Support WLFI Token, Team Says

The World Liberty Financial ecosystem currently includes two tokens. Alongside its USD1 stablecoin, there is also the project’s WLFI governance token. 

In the proposal, the team said that growing USD1 will be beneficial to WLFI as well. 

“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 said.

“As USD1 grows, more users, platforms, institutions, and chains integrate with World Liberty Financial infrastructure,” the team added. 

That, they said, will increase “the scale and influence of the network governed by WLFI holders.” This could then lead to more demand for “WLFI-governed services, integrations, liquidity services, and ecosystem programs.” 

WLFI token holders will also gain governance power over a “larger, more valuable network,” the team said.  “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.” 

As of 1:10 a.m. EST, the proposal has received 1.3K votes. More than half (56.04%) of the votes are against the proposal, while 43.65% of the votes are in support of the proposed token allocation to support WLFI growth. Token holders have until Jan. 4 to place their votes.

After the proposal was submitted, the price of WLFI has surged more than 4%, data from CoinGecko shows. This is a continuation of the positive trend that the crypto has been in over the past week. As such, WLFI is now more than 11% in the green on the 7-day time frame. 

Despite those recent gains, however, WLFI remains over 6% down on the longer-term monthly time frame.