World Liberty has launched a new proposal to use some of the project’s treasury holdings to boost the supply of USD1. The decision would be finalized through a community vote by investors.
World Liberty Proposes Treasury Incentives to Scale USD1
WLFI’s team has proposed a new plan to boost the use of their USD-pegged stablecoin. They aim to unlock funds from their community treasury to encourage people to adopt the stablecoin on both centralized and decentralized exchanges.
The proposed measure aims to strengthen strategic partnerships and encourage the use of USD1. This is especially important when looking at the competitive areas of centralized finance (CeFi) and decentralized finance (DeFi).
Governance Vote participants are presented with three options. These options include approving the use of below 5% of the unlocked treasury tokens, rejecting the proposal while holding all assets in reserve, and voting to abstain.
World Liberty’s ability to invest in projects is based on its treasury reserves. Before the WLFI token sale, nearly 20 billion WLFI tokens were set aside in these reserves. This is currently valued at about $2.4 billion. If there is a 5% unlock, this amount is around $120 million.
This decision follows the approval for a complete buyback and burn as decided by governance. The plan looked to use the treasury liquidity fees for the repurchase and burn of the WLFI tokens.
Rapid Growth Puts USD1 Among Top Stablecoins
Since its launch earlier this year, the stablecoin has reported one of the fastest growth trajectories in the stablecoin market. The asset has gathered nearly $3 billion in total value locked within six months. This is driven by strong on-chain trading activity and several high-profile integrations.
The World Liberty team acknowledges that it owes its progress to continued outreach and integration with real-world applications. The community has verified that all incentives rewarded in support of the treasury would be shared openly.
In spite of the unusually fast development, USD1 remains behind more prominent rivals. The stablecoin has been named among the top ten largest USD-pegged assets by the current market cap. However, it trails other stablecoins that are ranked higher, such as PayPal’s PYUSD.
In addition to treasury rewards, World Liberty has other plans for growth. The project has shown that it plans to tokenize commodities like oil. The move aims to connect the traditional space and DeFi platforms directly through its stablecoin.
At the same time, there have already been some talks about the integration of the stablecoin with other blockchains. The Cardano founder, Charles Hoskinson, made statements that they had tried to integrate the stablecoin onto their platform.
Source: https://coingape.com/usd1-gets-major-boost-as-trumps-world-liberty-plans-treasury-backed-expansion/
