World Liberty will use 5% of the Treasury asset for 1 USD.

World Liberty Takes an Innovative Step for Stablecoin

World Liberty Financial, supported by the Trump family, has proposed using 5% of its treasury assets for its stablecoin project USD1. This strategic decision is seen as a critical move to stay competitive in the increasingly competitive stablecoin market.

Increasing Competition in the Stablecoin Environment

The proposal was made at a governance forum of World Liberty Financial. The team emphasized the importance of increasing the supply of USD1, stating that this step would create greater visibility and value in the industry. It is mentioned that the additional supply would expand the use cases of USD1 through more central finance (CeFi) and decentralized finance (DeFi) partnerships.

WLFI Token and Treasury Plans

World Liberty Financial’s WLFI token started trading in September. It is anticipated that a total of 19.96 billion WLFI supply will be allocated to the treasury before the launch. Under current market conditions, the total treasury assets are valued at approximately $2.4 billion, and opening up 5% amounts to $120 million.

Voting Process and Future Expectations

The team's proposed voting options were grouped under three main categories: in favor, against, or abstain. However, details on how the voting will be conducted have not yet been clarified. The project’s USD1 stablecoin was launched in March and has reached a market value of $2.74 billion, making it the seventh largest stablecoin in the market according to CoinGecko data.

In conclusion, World Liberty Financial’s decision is attracting investor attention during a period of increased competition in the stablecoin market. The project is following a clear strategy regarding how to utilize a portion of its treasury assets.