World Liberty Financial opens vote to boost USD1 supply

World Liberty Financial, backed by members of the Trump family, has proposed allocating 5% of the WLFI token treasury to increase the supply of its USD-pegged stablecoin, USD1. The plan was posted Wednesday to the project’s governance forum, and a community vote is live with opposition slightly ahead.

The proposal states the extra issuance is intended to keep pace with competition among stablecoins and to expand USD1’s distribution through selected centralized and decentralized finance partners.

The team described the goal as spreading “USD1 use cases across select high-profile CeFi & DeFi partnerships,” creating more “value capture” opportunities within the WLFI ecosystem. “As USD1 grows, more users, platforms, institutions, and chains integrate with World Liberty Financial infrastructure. This increases the scale and influence of the network governed by WLFI holders,” the post reads. “More USD1 in circulation leads to more demand for WLFI-governed services, integrations, liquidity incentives, and ecosystem programs.”

Token holders can vote for, against, or abstain. The project has not detailed how the voting is being conducted. Early feedback on the forum appears mixed, with “against” narrowly leading.

WLFI began trading on exchanges in September. Before the launch, the project allocated 19.96 billion WLFI to the treasury. At current prices, that pool is valued at almost $2.4 billion, implying that 5% would equate to roughly $120 million based on those figures.

USD1 debuted in March and now has a market capitalization of $2.7 billion, ranking seventh among USD-pegged stablecoins. It trails PayPal’s PYUSD by about $1.1 billion in market cap.

As we covered previously, Binance said it would replace all assets used as collateral for its BUSD stablecoin with USD1, issued by World Liberty Financial, at a 1:1 rate. The exchange also planned zero-fee USD1 trading pairs for major tokens like Ether, adding USD1 to its collateral pool and creating new fee-free USD1 markets. Binance described USD1 as part of its updated collateral framework.