World Liberty Financial Plans Treasury Incentives to Push USD1 Adoption

World Liberty Financial has unveiled a new governance proposal aimed at jump-starting adoption of its dollar-pegged stablecoin, USD1, by tapping its own digital asset treasury.

Released on Dec. 28, the plan seeks approval to allocate under 5% of the project’s unlocked WLFI token supply toward incentive-driven partnerships across the crypto industry. The goal is to embed USD1 more deeply into exchanges, platforms, institutions, and blockchain networks, expanding its real-world usage.

According to the proposal, broader circulation of USD1 would act as a growth engine for the wider WLFI ecosystem, increasing on-chain activity and reinforcing long-term token utility for governance participants. The project argues that accelerating adoption is critical to narrowing the gap with more established stablecoin issuers.

USD1, launched roughly six months ago, has already reached a market capitalization of about $3.2 billion. That places it as the seventh-largest stablecoin globally, behind PayPal’s PYUSD but ahead of Ripple’s RLUSD, based on DefiLlama data.

The strategy mirrors recent subsidy-heavy campaigns elsewhere in crypto. Binance, for instance, has promoted USD1 with yields of up to 20% APY, capped at $50,000 per user. World Liberty Financial says it plans to pursue similar yield-based incentives, funded directly through its own equity rather than external backers.

Still, the proposal has faced resistance from the community. Early voting data shows roughly 67.7% of participating voters opposing the measure as of Sunday afternoon. The vote remains open until Jan. 4, 2026, leaving room for larger token holders to influence the outcome.

Despite the pushback, the initiative remains active. World Liberty Financial has pledged that all partners receiving incentives would be publicly disclosed, emphasizing transparency as it seeks to rally support for the plan.