The World Liberty Financial team has proposed using 5% of the project’s treasury to expand adoption of its USD1 stablecoin through strategic partnerships and ecosystem incentives.

According to the proposal posted on the World Liberty Financial governance forum, the Trump family-backed project wants to increase the supply of USD1, which it believes would directly enable “demand for WLFI-governed services, integrations, liquidity incentives, and ecosystem programs.”

“The success of USD1 directly strengthens WLFI because USD1 adoption expands the overall footprint, utility, and economic activity of the entire WLFI ecosystem,” the team wrote.

As per the proposal, the additional supply would be used to support “high-profile CeFi and DeFi partnerships” that can accelerate adoption and also help USD1 keep pace in an “increasingly competitive stablecoin landscape.”

“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,” it said.

WLFI holders are expected to directly benefit as they “gain governance power over a larger, more valuable network,” giving them greater influence over the direction of the platform.

If the proposal is approved by governance participants, World Liberty plans to use 5% of its treasury funds. Per WLFI’s tokenomics, 19.96 billion of the total WLFI supply was allocated to the treasury, which would translate to roughly $120 million based on current prices.

WLFI stakeholders can now vote either for, against, or abstain from the proposal.

World Liberty Financial pushes for USD1 adoption

With a market cap of $2.74 billion, USD1 currently stands as the seventh-largest USD-pegged stablecoin competing against already established leaders like USDT and USDC.

The WLFI team has undertaken various initiatives to boost USD1’s use across retail and institutional markets, and plans to introduce new products like a crypto-linked debit card that connects with Apple Pay.

USD1 has also expanded across multiple blockchain networks since its debut, initially launching on Ethereum and BNB Chain before later integrating with Solana, TRON, Aptos, and AB Chain over the past months.

However, the stablecoin has also come under scrutiny for its association with President Donald Trump and his family. Concerns have centered on the fact that most of the stablecoin’s supply is held offshore, and the project has not released a reserve report since July.