World Liberty Financial, a decentralized finance (DeFi) company linked to the family of President Donald Trump, put forward an initial governance proposal to deploy a small portion of its unlocked WLFI token treasury to support adoption of its dollar-pegged USD1 token as competition in the $300 billion stablecoin market intensifies.

The advisory proposal, posted to the project’s governance forum, recommends using less than 5% of unlocked WLFI holdings to fund incentives and partnerships tied specifically to USD1 usage across selected centralized and decentralized finance platforms.

Any deployment of tokens would be disclosed publicly, with partner details published on WLFI’s website and in written communications, according to the proposal.

USD1, the first flagship product of the World Liberty Financial ecosystem, has grown to nearly $3 billion in total value locked within six months of launch, driven by onchain trading activity and a series of large integrations across exchanges like Binance.

The team argues that targeted incentives are needed to sustain that momentum in what it described as an increasingly crowded landscape for stablecoins, crypto tokens whose value is pegged to real-world asset such as the dollar or gold.

“As USD1 grows, more users, platforms, institutions, and chains integrate with World Liberty Financial infrastructure,” the proposal reads. “More USD1 in circulation leads to more demand for WLFI-governed services, integrations, liquidity incentives, and ecosystem programs.”

“WLFI token holders gain governance power over a larger, more valuable network, including decisions around incentives, product expansion, and cross-chain strategy,” it added.

The team noted that any future expansion of treasury usage beyond the proposed allocation would require additional governance votes.

The proposal does not specify which platforms would receive incentives, but notes that deployments would focus on “select high-profile CeFi and DeFi partnerships.” It also emphasizes that the use of WLFI tokens would not alter USD1’s mechanics, positioning the move as an ecosystem growth strategy rather than a change to the stablecoin itself.

Token holders are being asked to weigh in through forum discussion ahead of a formal vote. The options include approving the proposal, rejecting it and keeping the tokens in treasury, or abstaining.