WLFI Approves $120M Allocation to Drive USD1 Stablecoin Expansion

TLDR

• WLFI has approved a proposal to allocate 5% of its unlocked treasury for USD1 adoption.
• The approved allocation is worth around $120 million based on the current token valuation.
• The initiative aims to increase USD1 usage through liquidity mining and partner incentive programs.
• The proposal faced early resistance but later gained enough support to pass in the governance vote.
• USD1 is a dollar-pegged stablecoin backed by cash reserves and Treasury bills launched in early 2025.

World Liberty Financial (WLFI) has approved a governance proposal to allocate 5% of its treasury to boost USD1 adoption, following a closely watched community vote. The approved initiative will deploy approximately $120 million worth of WLFI tokens toward incentive programs to expand the use of its USD1 stablecoin, which launched earlier in 2025. Despite early resistance, the proposal gained traction during the final voting window and is now set for implementation.

Strategic Push in a Crowded Stablecoin Market

WLFI plans to use this allocation to promote USD1 across centralized and decentralized finance platforms, supporting integrations and adoption programs. The stablecoin, backed by U.S. Treasury bills, cash deposits, and cash equivalents, has quickly grown into a top-tier asset.

The governance team described the initiative as a “growth accelerator” that will benefit the entire WLFI ecosystem. According to the proposal, incentives will include liquidity mining, yield programs, and reward offerings to strategic partners. These measures aim to embed USD1 into institutional platforms, wallets, and other digital financial services.

USD1 has been integrated into various exchanges and blockchain networks, helping it gain user trust and liquidity. By allocating part of its treasury, WLFI expects to increase USD1’s circulation, visibility, and long-term utility.

The stablecoin market has become more competitive, requiring projects to take proactive measures to gain market share. WLFI’s decision seeks to reinforce the token’s role in global digital finance. The team believes a targeted push is necessary for broader adoption.

WLFI Vote Passes Despite Early Opposition

The proposal, introduced in late December 2025, faced initial pushback from over 67% of early voters on the governance forum. Opponents raised concerns over the risks of reducing reserve strength and increasing exposure.

There were also concerns tied to stricter regulations under the U.S. GENIUS Act and the EU’s MiCA framework. These regulatory pressures stress the importance of strong reserve backing and compliance. Some token holders questioned whether this was the right time to deploy assets.

However, final vote results shifted in favor of the proposal just before the deadline. The decision now allows WLFI to use its unlocked treasury for USD1 adoption efforts. The treasury currently holds 19.96 billion WLFI tokens, valued near $2.4 billion.

This $120 million allocation will be used over multiple phases and tailored programs. Supporters argue that expanding real-world usage is essential for USD1 to compete with larger players like USDC and USDT. They emphasized that incentives are needed to drive partnerships and listings.

WLFI Market Reacts to Vote and Geopolitical Events

WLFI saw a 20% price increase in the week prior to the vote, despite a slight 0.62% dip in the past 24 hours. The coin broke resistance between $0.172 and $0.182 following geopolitical developments, including U.S. military action in Venezuela.

President Trump confirmed the strikes during a national address, stating the U.S. would take control of Venezuela’s oil reserves. Trump claimed these assets are worth over $17 trillion, based on current prices. He added that he had not informed Congress ahead of the operation.

WLFI’s price crossed all major exponential moving averages by New Year’s Eve, triggering a technical breakout. The 200 EMA at $0.147 turned upward and now sits below the current price. RSI indicators suggest early consolidation, not exhaustion.

Meanwhile, Trump-affiliated Trump Media and Technology Group announced a new token for its shareholders. The token will be distributed on a one-to-one basis per share held. It will operate on the Cronos blockchain through a partnership with Crypto.com.

CEO Devin Nunes called the token “a first-of-its-kind distribution” that aims to reward shareholders transparently. The move reflects growing interest in blockchain products from Trump-associated entities. WLFI now prepares to execute the newly passed USD1-focused initiative.

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