WLFI Plans 5% Treasury Allocation to Increase USD1 Stablecoin Supply

Highlights:

• World Liberty Financial proposes using 5% WLFI treasury to expand the USD1 supply.
• The proposal says a higher USD1 circulation is needed to compete with rival stablecoin projects.
• The plan aims to grow USD1 usage across selected centralized and decentralized platforms.

World Liberty Financial, a project linked to members of the Trump family, shared a proposal with its community. The proposal asks voters to approve using 5% of the WLFI token treasury to increase the supply of its USD1 stablecoin. The goal is to raise circulation and boost usage. The proposal was posted on the World Liberty Financial governance forum on Wednesday. The team said a larger USD1 supply is needed to stay competitive. They also pointed to strong pressure from other stablecoin projects in the market.

🚨 GOVERNANCE UPDATE 🚨

A new proposal is now LIVE for voting from the community: using a portion of the unlocked WLFI treasury as incentives to fuel USD1 adoption.

Over the last 3 weeks alone, WLFI has:

• Bought back $10,000,000 of WLFI using USD1
• Secured major spot…

— WLFI (@worldlibertyfi) December 17, 2025

WLFI Treasury to Boost USD1 Circulation and Institutional Engagement

The document states that the treasury will use funds to place USD1 more widely across selected centralized and decentralized platforms. Increased usage will drive stronger economic returns from activities across products governed by WLFI holders. “As USD1 grows, more users, platforms, institutions, and chains integrate with World Liberty Financial infrastructure. This increases the scale and influence of the network governed by WLFI holders,” the team said.

The statement indicated that increasing USD1 circulation would likely boost demand for WLFI-governed services, integrations, liquidity incentives, and ecosystem programs. Project leaders suggested that higher token usage is connected to the expansion of internal programs under WLFI oversight.

WLFI began trading on exchanges in September. Before trading opened, documentation showed that 19.96 billion WLFI tokens from the total supply were reserved for the treasury. At current prices, that allocation carries a value close to $2.4 billion.

A 5% release from the treasury would equal about $120 million in tokens. At the same time, governance documents outlined three voting options: approval, rejection, or abstention. For now, voting remains open, although details about how votes are counted are still limited.

Meanwhile, early discussions show mixed views across the community. So far, comments opposing approval appear slightly ahead of supportive responses. In these discussions, members raised concerns about supply growth, treasury use, and long-term trust tied to governance decisions. 

USD1 Stablecoin Growth Steady but Trails Competitors

Earlier this year, USD1 entered circulation in March. According to CoinGecko data, its current valuation stands at $2.74 billion. As a result, USD1 ranks as the seventh-largest United States dollar-linked stablecoin. Since launch, its growth has remained steady rather than fast.

Despite recent progress, USD1 still lags behind close competitors. PayPal’s PYUSD holds the sixth position, with a valuation of about $1.1 billion higher. Because of this, any treasury-backed expansion would need to reduce that gap while maintaining trust across platforms that support USD1 circulation.

The WLFI team is working to increase USD1 use for both retail and institutional users. They plan a crypto debit card that works with Apple Pay. USD1 started on Ethereum and BNB Chain and later added Solana, TRON, Aptos, and AB Chain. The stablecoin faces concern due to links with President Trump, most of its supply is held offshore, and no reserve report since July.