World Liberty Financial proposes a treasury movement of $120 million and faces opposition from the community

Source: Yellow Original Title: World Liberty Financial proposes a treasury movement of $120 million and faces community opposition

Original Link: https://yellow.com/es/news/world-liberty-financial-propone-mover-120-millones-de-ddollars-of-the-treasury-and-faces-community-opposition World Liberty Financial proposed using up to 5% of its WLFI token treasury to expand the adoption of its stablecoin USD1.

The high-profile investor-backed DeFi project aims to deploy approximately $120 million in tokens through partnerships with centralized and decentralized platforms.

Initial governance votes show that opposition slightly exceeds support for the advisory proposal.

What happened

World Liberty Financial published the governance proposal on December 17, requesting less than 5% of the unlocked WLFI holdings to fund USD1 growth incentives.

The allocation would come from a treasury with approximately 19.96 billion WLFI tokens, valued at around $2.4 billion.

USD1 was launched in March 2025 and has grown to approximately $2.74 billion in market capitalization, making it the seventh-largest dollar-pegged stablecoin.

The project states that USD1 reached about $3 billion in total locked value within six months thanks to trading activity and integrations with exchanges.

World Liberty Financial committed to publicly disclosing all partners receiving WLFI incentives through its governance channels.

The proposal does not specify which platforms would receive tokens but mentions “high-profile CeFi and DeFi alliances.”

Recent activity includes a $10 million WLFI token buyback using USD1 and new trading pairs on certain exchanges.

Why it matters

The governance vote remains open with three options: approve, reject, or abstain.

Early voting indicates that currently more participants oppose the proposal than support it.

Community members have expressed concern over unlocking treasury tokens without clear vesting schedules, which could create selling pressure.

The project has not published a reserve audit since July 2025.

World Liberty Financial argues that USD1’s growth strengthens the broader WLFI ecosystem by expanding integrations and governance reach.

Any future treasury allocation beyond this initial 5% would require additional governance votes.

The advisory proposal serves as a test of community support amid skepticism about the token unlocking mechanics.