World Liberty Financial submits new USD1 growth proposal

World Liberty Financial submits new USD1 growth proposal

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World Liberty Financial, a decentralized finance (DeFi) project with ties to the Trump family, has submitted a proposal to use unlocked WLFI treasury holdings to support the growth of its USD1 stablecoin.

“To support the development and use of USD1 in an increasingly competitive stablecoin landscape, World Liberty Financial plans to use a small percentage of unlocked $WLFI tokens to support USD1 use cases in select high-profile CeFi and DeFi partnerships,” the team said in the Dec. 28 statement. proposal.

USD1 reaches $3 billion in TVL in 6 months

The World Liberty Financial team said its USD1 stablecoin “is one of the fastest growing stablecoins in the world,” with a total value of approximately $3 billion (TVL).

Top stablecoins by market capitalization (Source: Coin gecko)

Data from CoinGecko shows that USD1 ranks as the seventh largest stablecoin with a market capitalization of over $3.2 billion. This puts it below PYUSD, the stablecoin offered by payments giant PayPal. It also ranks USD1 one position above XAUT, the gold-backed token issued by Tether.

The World Liberty Financial team said the strong USD1 growth was achieved in just a few months “due to an increase in community support in key stablecoin onchain use cases such as trading and some major partnerships.”

“The team continues to work hard to increase the adoption and use of USD1, and is working towards the core vision of democratizing finance and access to the dollar globally,” she added.

USD1 Adoption Supports WLFI Token, Says Team

The World Liberty Financial ecosystem currently includes two tokens. In addition to the USD1 stablecoin, there is also the project’s WLFI governance token.

In the proposal, the team said that a growing USD1 will also be beneficial for WLFI.

“The success of USD1 directly strengthens WLFI, as USD1 adoption increases the overall footprint, utility and economic activity of the entire WLFI ecosystem,” the team said.

“As USD1 grows, more users, platforms, institutions and chains are integrating with the World Liberty Financial infrastructure,” the team added.

That, they said, will “increase the scale and influence of the network operated by WLFI holders.” This could then lead to more demand for “WLFI managed services, integrations, liquidity services and ecosystem programs.”

WLFI token holders will also gain governance power over a “larger, more valuable network,” the team said. “Increased adoption of USD1 creates more opportunities for value capture in the WLFI ecosystem, benefiting WLFI-managed initiatives and token relief in the long term.”

As of 1:10 a.m. EST, the proposal has received 1.3k votes. More than half (56.04%) of votes are against the proposal, while 43.65% of votes are in favor of the proposed token allocation to support WLFI growth. Token holders have until January 4 to cast their votes.

After the proposal was submitted, WLFI’s price increased by more than 4%, CoinGecko data shows shows. This is a continuation of the positive trend that the crypto has been in over the past week. As such, WLFI is now more than 11% in the green over a seven-day period.

However, despite these recent gains, WLFI remains more than 6% behind the longer-term monthly time frame.

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