World Liberty Financial Plans Treasury Allocation to Support USD1 Stablecoin

• WLFI plans to deploy 5% of its unlocked treasury to support USD1 growth after a community vote.
• USD1 reached $3 billion in TVL within six months, driving expanded governance and ecosystem activity.
• Onchain data links DWF Labs to over $300 million in USD1 liquidity routed through WLFI contracts.

World Liberty Financial (WLFI), a crypto platform backed by members of the Trump family, has announced plans to allocate at least 5% of its unlocked WLFI treasury holdings to support the expansion of its USD1 stablecoin. The decision follows a community governance process and comes as USD1 reaches a reported total value locked (TVL) of $3 billion within six months of launch.

The initiative is intended to increase USD1 adoption across centralized and decentralized platforms, while strengthening the broader World Liberty Financial ecosystem. According to the team, any future treasury deployments tied directly to USD1 growth will require additional governance approval.

Treasury Strategy and Governance Structure

WLFI confirmed that the treasury allocation was approved through a community vote that also enabled a separate WLFI token buyback program. Under that initiative, the protocol executed a $10 million buyback of WLFI tokens over three weeks, using USD1 to acquire tokens directly from the open market.

The company describes WLFI as the governance and coordination layer of the ecosystem, while USD1 functions as its primary product. Officials stated that increased USD1 usage is expected to broaden integration of WLFI across platforms, institutions, and blockchain networks, thereby expanding the scope of governance decisions overseen by WLFI token holders.

USD1 Adoption and Partner Incentives

World Liberty Financial said it is reviewing partnerships where WLFI incentives are referenced in online communications or listed on official partner websites. The goal, according to the team, is to ensure consistency between incentive programs and ecosystem growth objectives tied to USD1.

As USD1 circulation increases, the company expects greater demand for WLFI-governed services, including liquidity programs, integrations, and cross-chain initiatives. Governance participants would then vote on matters related to ecosystem expansion, incentive allocation, and product deployment strategies.

Community Feedback and Diverging Views

Community feedback on the treasury allocation revealed differing perspectives. Some participants supported using a portion of unlocked WLFI to incentivize development across decentralized exchanges and centralized trading platforms, including specific token acquisition strategies. Others opposed the move, recommending instead that a larger share of the WLFI supply, up to 80%, remain unlocked and held in the treasury.

Separately, blockchain analysis reported by Disruption Banking indicates that crypto market maker DWF Labs has provided substantial liquidity support to USD1 through multiple wallets and transactions, including over $300 million routed through WLFI’s TokenGovernor contract. The analysis also identified $84 million in liquidity injected during the past month. DWF Labs has publicly disclosed a $25 million USD purchase, with a portion allocated to Binance.