World Liberty Financial (WLFI) has put forward a governance proposal to allocate a portion of its unlocked WLFI treasury to create an incentive program aimed at boosting adoption and growth of its USD1 stablecoin. The proposal involves using less than 5% of the $120 million treasury holdings to fund partnerships and reward activities across both centralized (CeFi) and decentralized finance (DeFi) sectors.
The initiative seeks to enhance USD1's competitive position in the crowded stablecoin market by forming strategic partnerships that would create more robust ecosystems for the token. According to the proposal, incentives could include staking bonuses, transaction rewards, and funding for projects that integrate USD1, with the goal of increasing transaction volume and network activity.
A governance vote is currently underway within the WLFI community, with mixed reactions emerging. While some community members support the initiative as a way to "give-back to the partners building on $USD1 & incentivizing building innovative products," others have expressed fiscal concerns. Current voting sentiment shows a slight majority of "against" votes, though the proposal remains under active discussion.
World Liberty Financial, which is backed by the Trump family, emphasizes that this approach reflects a growing trend in cryptocurrency where projects use treasury funds to encourage adoption and reward community participation. The company notes that no regulatory or compliance challenges have been identified with the proposed plan, keeping the focus squarely on community engagement and ecosystem growth.
If passed, the incentives could trigger shifts in liquidity and market activity for USD1, potentially making it a more trusted choice for payments, DeFi platforms, and online transactions. The proposal represents a strategic move to leverage community-driven governance to drive real-world adoption of digital assets.
