World Liberty seeks to expand stablecoin USD1 using 5% of foundation funds

World Liberty Financial, a crypto project linked to former U.S. President Donald Trump and his family, will use part of the foundation's funds to expand its own stablecoin USD1.

On the 18th (local time), World Liberty Financial proposed through a governance forum using 5% of the WLFI token foundation allocation to expand USD1 circulation. The project said, "Expanding USD1 supply is essential in an increasingly competitive stablecoin market environment."

According to the proposal, the additionally supplied USD1 will be primarily used through partnerships with certain major centralized finance (CeFi) and decentralized finance (DeFi) partners. The plan is to expand USD1 use cases and strengthen the value capture structure across the WLFI ecosystem.

The project said, "As USD1 grows, more users, platforms, institutions, and blockchain networks will integrate with World Liberty Financial's infrastructure," adding, "This results in an expansion of the size and influence of the network governed by WLFI holders." It added, "An increase in USD1 circulation leads to increased demand for WLFI-based services, liquidity incentives, and ecosystem programs."

The WLFI token began exchange listings last September. Previously, the project stated that 19,960,000,000 of the total WLFI supply would be allocated to the foundation. At current prices, that allocation is worth about $2.4 billion, and using 5% of that would amount to about $120 million.

The vote on this agenda will be carried out with three options: for, against, or abstain. However, the specific voting method and calculation criteria have not been clearly disclosed. Community reactions are currently mixed, with opposing opinions slightly outweighing support.

Meanwhile, since its launch in March this year, USD1 has recorded a market capitalization of $2.74 billion, ranking seventh among dollar-pegged stablecoins. However, compared with PayPal's PYUSD, which is sixth, there is about a $1.1 billion gap by market cap, meaning additional growth drivers are needed to overturn the competitive landscape.