More USD1 leads to more World Liberty Financial-governed services demand

World Liberty Financial (WLFI) has unveiled plans to allocate at least 5% of its unlocked WLFI treasury holdings to support the growth of its USD1 stablecoin. WLF seeks to enhance strategic CeFi and DeFi partnerships and boost the adoption and usage of USD1 after the token hit a TVL of $3 billion in six months.

The WLFI team said they are committed to identifying all partners where WLFI incentives are either mentioned in online communications or offered on official websites. USD1 is the company’s flagship product, but WLFI remains the ecosystem’s governance and coordination layer, supporting every current and future product launched.

Meanwhile, the team claims that the success of USD1 will directly strengthen WLFI because the adoption of USD1 will expand the overall footprint, utility, and economic activities of the World Liberty Financial ecosystem as a whole. More users, platforms, institutions, and chains will also integrate WLFI as USD1 grows. However, future use of WLFI treasury holdings directly for USD1 growth will require additional governance votes. 

More USD1 leads to more World Liberty Financial-governed services demand

The World Liberty Financial team believes that having more USD1 in circulation leads to more demand for WLFI-governed services, ecosystem programs, integrations, and liquidity incentives. In practice, this will increase the scale and influence of the network governed by WLFI holders. These holders will gain governance power over a larger network on issues related to product expansions, decisions regarding incentives, and cross-chain strategies. 

In an open poll on the company’s website, one WLFI investor supporting the use of 5% of unlocked WLFI for USD1 growth said this is a good way for the company to give back to the partners building on USD1. The investor also believes this is an excellent opportunity to incentivize the development of innovative products that will help expand the USD1 ecosystem.

The investor recommends allocating funds towards DEXs, such as Ethereum (acquire DOLO and BLOCK), Solana (acquire AOL, BURGER, US, DREAM, and VALOR), and CEXs. They also recommend investing in BONK and/or additional bonkfun USD1 paired tokens, including $1coin/SPSC. However, a significant number of poll participants were against using the 5% WLFI treasury holdings for USD1, instead recommending that at least 80% of the total WLFI supply tokens be unlocked and held in the treasury.

World Liberty Financial community votes for WLFI buyback 

Following a successful community vote, WLFI activated a portion of its treasury to support the WLFI token buyback initiative, which directly benefits its native USD1 stablecoin. The company executed a massive $10 million worth of WLFI token buyback in a strategic three-week initiative powered by their USD1 stablecoin. The protocol used USD1 to buy WLFI tokens from the open market.

Meanwhile, it also emerged that DWF Labs has been secretly supporting USD1 by purchasing hundreds of millions of dollars worth of the token through anonymous wallets that circulate it in the WLFI ecosystem. Disruption Banking found, through a combination of analysis of dozens of wallets and thousands of mapped transactions, that the crypto market maker had funneled over $300 million of engineered liquidity through WLFI’s TokenGovernor contract. 

The reconstruction of multi-chain flows also identified a three-layer liquidity structure that silently injected $84 million in the past month alone. However, while these flows and the funding pipeline have not been previously reported, DWF Labs has publicly bought $25 million worth of USD1 tokens, a large part of which ended up on Binance.

The Cantor Network also announced plans to deploy USD1 a few days ago, representing another significant milestone in WLFI’s USD1 expansion strategy. The move aims to increase USD1’s reach across institutional onchain finance and accelerate the token’s adoption among regulated market participants worldwide.  

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