World Liberty Financial (WLFI) has unveiled a pivotal governance proposal to allocate a portion of its token treasury to expand the adoption of its native USD1 stablecoin. The proposal, subject to a community vote concluding on January 4, 2026, seeks authorization to use less than 5% of the project's unlocked WLFI token supply to fund incentive programs aimed at securing strategic partnerships.
The initiative is designed to integrate USD1 into a wider array of applications, including decentralized finance (DeFi) protocols, payment gateways, and merchant services. This strategy mirrors broader industry trends where projects use treasury assets to bootstrap ecosystem growth. WLFI argues that increased USD1 adoption would expand the network's footprint and create more value-capture opportunities for the ecosystem.
However, the proposal has met with significant early opposition. Preliminary voting data from one source shows 67.7% of participating voters opposing the measure, while another report indicates a 53.22% approval rate, highlighting a divided community. The voting mechanism is conducted on-chain, ensuring transparency.
The push comes as USD1, launched roughly six months ago, has grown to a market capitalization of $3.2 billion, ranking as the seventh-largest stablecoin globally. The project views the expenditure as necessary to close the competitive gap with giants like Tether (USDT) and USD Coin (USDC). The proposal also notes that Binance recently launched a promotional campaign offering yields of up to 20% on USD1, a model WLFI intends to replicate using its own treasury.
Financial analysts emphasize that the long-term success of such a treasury allocation hinges on creating sustainable, fee-generating utility for the stablecoin rather than just temporary volume. The project has stated that any partners receiving incentives would be publicly identified to ensure transparency.
