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.