about a strategic plan to allocate at least 5% of the reserve of unlocked WLFI tokens to support the growth of its own stablecoin named USD1.
Here are the details of the report mentioned in the article:
1. Strengthening the stablecoin USD1
* The plan aims to increase the adoption and use of the stablecoin USD1 after its total value locked (TVL) reached 3 billion dollars in just six months.
* 5% of WLFI tokens will be used to enhance strategic partnerships in the Central Finance (CeFi) and Decentralized Finance (DeFi) sectors.
* The team believes that the success of USD1 will directly strengthen the value of WLFI, as the latter represents the governance and coordination layer for the entire ecosystem.
2. Governance and Community Voting
* The team confirmed that any future uses of WLFI reserves for USD1 growth purposes will require additional votes from the community.
* Supportive investors see this move as a way to reward partners building their applications using USD1, incentivizing the development of innovative products.
* In contrast, some survey participants opposed this trend, suggesting the need to unlock 80% of the total WLFI supply and keep it in the treasury instead of allocating it this way.
3. Buyback Operations
* The WLFI community successfully approved activating a portion of the treasury to support the token buyback initiative.
* The protocol executed a massive buyback of $10 million in WLFI tokens from the open market over three weeks, using the stablecoin USD1.
4. Institutional Support and Liquidity (DWF Labs)
* The article revealed that DWF Labs (a crypto market maker) was secretly supporting USD1 by purchasing hundreds of millions of dollars through anonymous wallets.
* Analyses indicated that DWF Labs injected over $300 million in liquidity through WLFI's "TokenGovernor" contracts.
* Cantor Network also announced plans to deploy USD1, marking a significant step towards the adoption of the currency by globally regulated financial institutions.
Summary:
The strategy focuses on making USD1 the flagship product of the project, with WLFI being used as a governance tool and financial incentive to ensure network expansion and increased demand for services managed by token holders.
