World Liberty Financial Proposes Using Treasury to Boost USD1 Adoption

World Liberty Financial on Sunday proposed utilizing a portion of its digital asset treasury to accelerate the adoption of its affiliated stablecoin, USD1.

The governance proposal, released Dec. 28, seeks authorization to allocate less than 5% of the project’s unlocked WLFI token supply to fund incentive programs. The initiative aims to secure partnerships across the cryptocurrency sector to bolster the usage of the dollar-pegged asset.

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World Liberty Financial framed the effort as a flywheel for its broader ecosystem.

The proposal argues that wider USD1 usage would expand the footprint, utility, and economic activity of the WLFI network by encouraging more users, platforms, institutions, and chains to integrate with infrastructure governed by WLFI holders.

“Increased USD1 adoption creates more opportunities for value capture across the WLFI ecosystem, which accrues to the benefit of WLFI-governed initiatives and long-term token utility,” the proposal stated.

Besides that, the Trump-related project argued that the expenditure was necessary to close the competitive gap between USD1 and rival stablecoins.

Since its launch roughly six months ago, USD1 has grown to a market capitalization of $3.2 billion. It currently ranks as the seventh-largest stablecoin globally, trailing PayPal’s PYUSD but outpacing Ripple’s RLUSD, according to data from DefiLlama.

Meanwhile, the push for subsidized growth mirrors aggressive strategies seen elsewhere in the market.

Binance recently announced a promotional campaign offering users an annual percentage yield of up to 20% on USD1 holdings, capped at $50,000 per user. World Liberty Financial intends to replicate this model by using its own equity to finance similar yield-bearing partnerships.

However, the plan has met initial skepticism from the voting body. Preliminary data shows 67.7% of participating voters have opposed the measure as of Sunday afternoon. The voting period is scheduled to conclude on Jan. 4, 2026.

Despite the current pushback, the proposal remains active, with larger stakeholders potentially weighing in before the deadline.

The project stated that any partners receiving incentives under the new program would be publicly identified to ensure transparency