World Liberty Financial has proposed using five percent of its WLFI token treasury to expand the supply of its USD1 stablecoin, citing the need to compete in an increasingly crowded stablecoin market. The proposal was published on the project’s governance forum and is currently open for community voting.
According to the team, additional USD1 issuance would support integrations across selected centralized and decentralized finance platforms, increasing adoption and ecosystem utility. The project said broader usage could generate greater demand for WLFI-governed services, liquidity programs, and infrastructure.
WLFI tokens began trading in September, with nearly 20 billion tokens allocated to the treasury. At current market prices, a five percent allocation would be valued at approximately $120 million. The proposal offers voting options to approve, reject, or abstain, though details of the voting mechanics remain unclear.
Community reaction has been mixed, with opposition slightly outweighing support at the time of writing. USD1 currently holds a market capitalization of roughly $2.7 billion, ranking among the largest dollar-pegged stablecoins globally.
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