World Liberty Financial has introduced a governance proposal to use part of its digital asset treasury to accelerate adoption of its USD1 stablecoin.
The proposal, released on December 28, seeks approval to allocate less than 5% of the project’s unlocked WLFI token supply.
The funds would be used to subsidise incentives, liquidity programmes and strategic partnerships across the cryptocurrency sector.
World Liberty Financial said the initiative is designed to expand USD1 usage and strengthen the broader WLFI ecosystem.
According to the proposal, wider adoption of USD1 would encourage more platforms, institutions and blockchains to integrate with WLFI-governed infrastructure.
Increased USD1 adoption creates more opportunities for value capture across the WLFI ecosystem.
The proposal stated.
The project argued that treasury spending is necessary to compete more effectively with established stablecoin issuers.
USD1 has grown rapidly since its launch around six months ago.
The stablecoin has reached a market capitalisation of approximately $3.2 billion.
Market data shows USD1 ranks as the seventh-largest stablecoin globally
It currently trails PayPal’s PYUSD but exceeds the market size of Ripple’s RLUSD.
The proposal also references aggressive incentive-driven growth strategies seen elsewhere in the market.
Binance recently launched a promotional campaign offering up to 20% annual yield on USD1 holdings.
That programme is capped at $50,000 per user and funded through external incentives.
World Liberty Financial said it aims to replicate similar yield-bearing partnerships using its own treasury resources.
Despite the growth ambitions, the proposal has encountered significant early resistance from governance voters.
Preliminary voting data shows more than 67% of participants currently oppose the measure.
As of Sunday afternoon, opposition stood at approximately 67.7% of votes cast.
Critics have raised concerns about treasury dilution and long-term token value.
Supporters argue that short-term incentives could drive sustainable network effects.
The voting period is scheduled to conclude on January 4, 2026.
World Liberty Financial said the proposal remains active and open to further discussion.
Larger token holders may still influence the final outcome before the deadline.
The project added that any partners receiving incentives would be publicly disclosed.
It said transparency would be a core requirement of any approved subsidy programme.
At the time of reporting, World Liberty Financial price was $0.1452.