Trump family-backed World Liberty Financial has proposed using 5% of the project’s WLFI token treasury to grow the supply of its stablecoin USD1.
The proposal outlines that the additional supply would help spread “USD1 use cases across select high-profile CeFi & DeFi partnerships,” with increased adoption helping to create more “value capture” opportunities in the WLFI ecosystem.
“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 team outlined three potential voting options in the proposal: for, against or abstain. The vote is now live, but it is not explicitly clear how the voting is taking place.
The reaction to the proposal is currently mixed, with “against” slightly edging out those who indicate they support the proposal.
The 5% treasury unlock may help spur growth of the asset; however, it has a lot of catching up to do if it wants to displace competitors, with sixth-placed PYUSD from PayPal having a market cap $1.1 billion larger than USD1.
