World Liberty Financial Proposes $120M Treasury Spend to Boost USD1 Stablecoin

The Trump-backed crypto project, World Liberty Financial (WLF), has submitted a governance proposal to deploy 5% of its WLFI token treasury to aggressively expand the reach of its stablecoin, USD1. The move is designed to help the project gain ground in a saturated market currently dominated by giants like Tether and Circle.

Strategy for Expansion

The proposal suggests using approximately $120 million worth of WLFI tokens (based on current treasury valuations of $2.4 billion) to fund strategic partnerships across both Centralized Finance (CeFi) and Decentralized Finance (DeFi). Key objectives include:

• Increasing Liquidity: Embedding USD1 into more exchanges and lending protocols.
• Institutional Adoption: Targeting integrations with platforms like the Canton Network.
• Network Effects: Creating a "value capture loop" where higher USD1 circulation drives demand for services governed by WLFI holders.

Current Market Standing

While USD1 has grown to a $2.74 billion market cap since its March launch—ranking it as the 7th largest dollar-pegged stablecoin—it still faces a steep uphill battle. It currently trails PayPal’s PYUSD by over $1 billion and remains a fraction of the size of market leaders USDT and USDC.

Mixed Community Sentiment

The proposal has sparked debate among WLFI holders. While some see the move as a necessary "growth hack" to stay competitive, others have raised concerns regarding:

• Token Dilution: Worries about the impact of releasing large amounts of treasury tokens so soon after the project’s public launch.
• Governance Clarity: Uncertainty regarding how voting power is calculated and the specifics of the deployment.
• Risk Management: Concerns over long-term capital preservation versus short-term aggressive scaling.

As the vote remains live, the outcome will serve as a major indicator of investor confidence in the project's ability to balance rapid expansion with sustainable governance.

December 2025, Cryptoniteuae