coinspress.com
World Liberty Financial is debating a selective treasury strategy aimed at accelerating adoption of its dollar-backed stablecoin, USD1.
The idea centers on using a small slice of unlocked WLFI reserves to push USD1 deeper into both centralized and decentralized crypto markets.
Rather than pursuing broad token distributions, the plan focuses on targeted growth initiatives designed to expand real usage and integrations.
Less Than 5% Of WLFI Reserves Under Review
At the center of the proposal is a potential allocation of under 5% of the unlocked WLFI treasury, currently estimated at around $120 million. These funds would not be handed out directly. Instead, they would support structured incentive programs tied to specific CeFi and DeFi partnerships.
The proposal argues that this approach can strengthen liquidity and platform adoption for USD1 while avoiding unnecessary dilution or market pressure on WLFI.
Why USD1 Adoption Is The Priority
According to World Liberty Financial, the long-term value of WLFI depends on whether USD1 becomes widely used rather than simply issued. A larger circulating supply combined with consistent transaction activity is expected to improve the protocol’s relevance, attract integrations, and reinforce demand for WLFI-governed products and services.
USD1 is positioned as an emerging challenger in the regulated stablecoin space, competing with offerings such as PayPal’s PYUSD. The proposal emphasizes that distribution strategy and timing are critical in determining which stablecoins gain lasting traction.
Governance Vote Draws Mixed Reactions
The advisory proposal was published on the World Liberty Financial governance forum on December 17, 2025, and is now open for voting. WLFI holders can choose to approve, reject, or abstain.
Initial community feedback reflects a split view. Some participants see the treasury deployment as a necessary step to remain competitive in an increasingly crowded stablecoin market. Others question whether the timing is appropriate and whether using unlocked reserves for growth incentives sets the right governance precedent.