Key Insights
- WLFI holders vote on the use of treasury funds to expand the USD1 stablecoin.
- The proposal is aimed at a 5% treasury allocation of approximately $120 million.
- This project aims to further the integration of partners to increase liquidity and expand USD1 to additional blockchain ecosystems.
World Liberty Financial has initiated a governance vote to determine whether a portion of its WLFI token treasury should be allocated to support the growth of its USD1 (U.S. dollar-pegged) stablecoin.
The proposal was posted to the World Liberty Financial governance forum on Wednesday, as it seeks to allocate 5% of the treasury to expand the supply of USD1.
Treasury Deployment Tied to Stablecoin Expansion
According to the proposal, an additional USD1 supply would be directed toward expanding usage across selected centralized and decentralized finance partnerships. The team stated that wider circulation could strengthen integration with platforms, institutions, and blockchain networks that interact with World Liberty Financial infrastructure.
The team stated that wider USD1 circulation could encourage more platforms, institutions, and blockchain networks to integrate with World Liberty Financial’s infrastructure.
Furthermore, the greater adoption of the stablecoin would subsequently lead to an increase in demand for services, integrations, and incentive programs coordinated by token holders in WLFI.
WLFI Treasury Size Comes Into Focus as Vote Proceeds
In addition to that, Governance participants have the option of approving restricted use of treasury, rejecting the offer, or failing to cast a vote. While the proposal confirms that voting is live, it does not clearly outline the precise mechanics of how votes are counted or executed, either on-chain or off-chain.
Moreover, WLFI began trading on exchanges in September, following earlier disclosures that 19.96 billion tokens from the total supply would be allocated to the treasury. At current prices, that total sum is worth almost $2.4 billion, with a 5% unlock equating to around $120 million.
Shift From Token Burns to Active Treasury Deployment
Adding to the report, the treasury plan is based on a previous governance vote that passed a complete buyback and burn program of WLFI tokens. That initiative relied on liquidity fees rather than direct funding through the treasury, aiming to signify a shift in the project’s resource utilization going forward.
The present proposal highlights the attempt to proactively implement capital as a measure in favor of certain products, rather than managing the token supply alone. Through the vote, the governing parties will decide whether to use treasury resources to expedite the adoption of USD1 billion or to reserve them for other purposes.
