World Liberty Financial proposes a 5% government bond allocation to support USD1 growth

World Liberty Financial plans to deploy 5% of WLFI cash to increase USD1.

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

The plan recommends deploying approximately 5% of WLFI’s treasury coins, which is approximately $120 million at current market prices, to support the adoption and use of USD1 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 (TVL) of approximately $2.7 billion in just six months. WLFI declared that this growth is driven by increasing community support and the integration of the stablecoin 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 broader 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-managed services, integrations, liquidity incentives and ecosystem programs is expected to increase. This would in turn 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 post on its website and in online communications a list of all partners receiving WLFI-based incentives. The proposal is now open for a board vote.

May’s Meme Coin wave

Although USD1 has grown rapidly, it still lags behind 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% allocation to government bonds is intended to help narrow this gap by promoting wider use of the stablecoin across multiple platforms and chains.

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