Trump Family WLFI Unlocks the Treasury! $10 Million Buyback USD1 Promotion Voting

Trump family crypto project WLFI (World Liberty Financial) announced a new proposal suggesting “using partially unlocked WLFI treasury funds as incentives to promote USD1,” with community voting now open. Over the past 3 weeks, WLFI has used USD1 to repurchase approximately $10 million worth of WLFI tokens and has launched major spot trading pairs on Binance.

Three Strategic Intentions of the WLFI Treasury Unlock Proposal

(Source: WLFI)

The core of WLFI community voting is a seemingly simple yet complex proposal: to utilize unlocked treasury funds to drive the adoption of the USD1 stablecoin. The strategic intent of this proposal can be understood on three levels.

The first is market expansion for USD1. As the stablecoin within the WLFI ecosystem, USD1 currently has far lower market recognition and circulation than mainstream stablecoins like USDT and USDC. Through treasury incentives, WLFI can subsidize early adopters, liquidity providers, and applications integrating USD1. This “spending to gain market share” strategy is common in tech industries; platforms like Uber and Didi initially used large-scale subsidies to rapidly build network effects.

The second is value capture for WLFI tokens. Over the past 3 weeks, WLFI has used USD1 to buy back about $10 million worth of WLFI tokens. This buyback mechanism creates actual demand for USD1 while reducing circulating supply of WLFI tokens. If the proposal passes, treasury funds will continue to be used for buybacks, creating ongoing buying support. This design tightly links USD1 usage with WLFI token value, generating a positive feedback loop.

The third is legitimizing the unlock schedule. The proposal mentions “advancing the finalization of WLFI token unlock schedules,” which is the most sensitive part. Tokens held by early investors and the team are usually subject to lock-up periods; early or accelerated unlocks can dilute existing holders’ value. Handling this through community voting aligns with decentralized governance narratives and provides management with flexibility.

Three Major Controversies of the WLFI Treasury Funds Proposal

Opacity of unlock ratios: The proposal only states “partially unlocked treasury funds,” with specific amounts and proportions undisclosed, raising concerns about dilution.

Lack of oversight on buyback prices: How many tokens were bought back with $10 million? What was the average cost? No third-party audits are provided.

Conflict of interest risks: Trump family holds about 38% of WLFI equity; does treasury decision-making truly reflect community will?

These controversies are not unfounded. A previous report by the Financial Times indicated that the Trump family earned over $1 billion annually from crypto-related businesses, with World Liberty Financial holding a significant share. Against this background, the use of treasury funds naturally raises suspicions of “milking the project.”

USD1’s Dual Advancement in CeFi and DeFi

WLFI is pursuing a dual approach to promote USD1. In CeFi (centralized finance), launching USD1 trading pairs on Binance is a major breakthrough. As the world’s largest crypto exchange, Binance’s listing means USD1 has access to a vast user base and liquidity. Users can trade USD1 directly for other crypto assets on Binance without converting first to USDT or USDC.

In DeFi (decentralized finance), WLFI is pushing for USD1 integration across various protocols. This includes trading pairs on decentralized exchanges, collateral in lending protocols, and rewards in liquidity mining. The challenge in DeFi is convincing protocols to accept a new stablecoin, which typically requires substantial liquidity incentives.

This is where treasury funds come into play. WLFI can offer WLFI token rewards to protocols integrating USD1 or directly provide USD1 as liquidity mining incentives. While these incentives may dilute token value in the short term, successfully establishing USD1’s network effects could generate long-term value far exceeding short-term costs.

The $10 million buyback over the past 3 weeks can be seen as a test of this strategy. WLFI used USD1 to purchase its own tokens, creating use cases for USD1 (demonstrating its function as a medium of exchange) and reducing WLFI supply to support the price. If this model proves effective, continued treasury investment will accelerate USD1’s adoption.

Trump Policy Support and Regulatory Gray Areas

WLFI’s expansion strategy is not happening in a vacuum but is deeply tied to Trump administration’s crypto-friendly policies. After taking office, Trump immediately dismissed SEC Chair Gensler, appointed crypto advocate Paul Atkins, and ordered the creation of a national Bitcoin reserve. These policies have created a highly favorable environment for WLFI’s development.

However, this political-business relationship also raises unprecedented conflicts of interest. Former President George W. Bush’s White House Chief Ethics Lawyer Richard Painter stated: “Since the Civil War, every president has avoided any significant economic conflicts of interest with their official duties.” The Trump family holding about 38% of WLFI and promoting crypto-friendly policies is unprecedented in modern American history.

The regulatory status of USD1 stablecoin also remains in a gray area. The US GENIUS Act provides a framework for dollar-backed stablecoins, but details are still being finalized. Will USD1 meet future regulatory standards? What about transparency and quality of its reserves? These questions currently lack clear answers. Canada’s recent proposal requires stablecoins to be fully backed by government bonds and redeemable instantly without fees, but whether USD1 can meet such standards remains uncertain.

For WLFI token holders, this community vote is a critical moment. Supporting the proposal means endorsing treasury fund use and adjusting token unlock schedules, which may dilute value short-term but enable long-term growth. Opposing the proposal indicates distrust in management, potentially slowing project progress but protecting existing holders’ interests. The voting outcome will reveal the true will of the community and the degree of decentralization in WLFI governance.

While the $10 million buyback demonstrates execution capability, long-term success depends on sustained demand for WLFI tokens after buybacks conclude. The market will closely watch whether this buyback is a one-time event or part of a broader, ongoing strategy.