World Liberty Financial Proposes 5% Treasury Allocation to Support USD1 Growth

World Liberty Financial has proposed using a small portion of its unlocked treasury to boost the growth of its stablecoin, USD1. The latest move aims to expand the project’s influence across the crypto ecosystem.

The plan recommends deploying around 5% of WLFI’s treasury tokens, which is roughly $120 million at current market prices, to support USD1 adoption and usage through select high-profile partnerships in both centralized finance (CeFi) and decentralized finance (DeFi).

Strengthening USD1 Usage

Since its launch in March, USD1 has grown rapidly, reaching a total value locked (TVL) of about $2.7 billion in just six months. WLFI stated that this growth has been driven by increasing community support and the stablecoin’s integration into key on-chain use cases such as trading.

World Liberty Financial says that by backing USD1 with WLFI treasury tokens, it can strengthen its ecosystem, promote wider adoption of the stablecoin, and create new economic opportunities for token holders.

The proposal highlights that USD1 is a flagship product for World Liberty Financial, and its growth is closely tied to the value and influence of the WLFI token. As USD1 circulates more widely, demand for WLFI-governed services, integrations, liquidity incentives, and ecosystem programs is expected to rise. This, in turn, would expand the network controlled by WLFI holders and increase their governance power over the project’s future decisions, including product development, incentive structures, and cross-chain strategies.

To ensure transparency, the company plans to clearly list all partners receiving WLFI-based incentives on its website and in online communications. The proposal is now open for a governance vote.

May’s Meme Coin Surge

While USD1 has grown quickly, it still trails some competitors in the stablecoin market. For example, PayPal-backed PYUSD has a market cap of $3.86 billion, which is $1.1 billion larger than USD1. The 5% treasury allocation is intended to help narrow this gap by promoting wider use of the stablecoin across multiple platforms and chains.

In May, early investors in USD1-paired meme coins on the BNB chain, particularly from the BUILDon project, saw sharp price gains. These tokens quickly dominated meme coin trading volume, and BUILDon alone accounted for over 90% of daily activity.

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