World Liberty Financial has proposed to dedicate 5% of the WLFI token treasury to support the supply of its USD1 stablecoin. The project submitted the proposal to the World Liberty Financial governance forum on Wednesday.Â
In the proposal, World Liberty Financial narrated the importance of increasing the USD1 supply to meet growing market demands. More so, the team emphasized that the stablecoin space is becoming highly competitive due to the release of new tokens by prominent issuers.
Furthermore, the project team highlighted that adding more supply will help boost the use case of the USD1 across some popular CeFi and DeFi ecosystems. The increased adoption according to the team will help establish more opportunities within the WLFI ecosystem.
World Liberty Financial is confident that the approach will increase the scale and influence of the network. The proposal illustrated that the growth of USD1 will attract more users, platforms, institutions, and projects to integrate with the World Liberty Financial infrastructure.
Also, the team provided three voting options in the proposal and voting is now live. However, it is not clear how the voting process will take place.
Side note
Meanwhile, to an extent, the 5% of WLFI treasury will help push USD1 into new heights but it is uncertain how far the growth can go. World Liberty Financial’s WLFI debuted in September as the project team allocated 19.96 million of the token’s total supply to its treasury.
Currently, WLFI is trading at $0.1283 according to Coinmarketcap. Therefore, at current prices, the treasury is worth about $2.4 billion and the 5% unlock will sum to almost $120 million.
In recent times, the stablecoin sector has become seriously competitive due to regulatory clarity. Additionally, the signing of the GENIUS Bill into law has helped improve investors’ and issuer confidence.
Currently, USD1 is the seventh-largest stablecoin pegged to the US dollar. The Trump family-backed stablecoin controls a market cap of $2.71 billion despite launching in March.
Tether’s USDT maintains a strong dominance over the USD-pegged stablecoin space with a market capitalization of $186.22 billion. According to Coinmarketcap, the entire stablecoin market holds a $317 billion total worth.