Trump's return to the White House marks one year, and his family's associated cryptocurrency project WLFI has made a big move! This Wednesday, the governance forum proposed a motion: to use 5% of the national treasury reserves (about 120 million USD) to subsidize its own stablecoin USD1, vowing to seize market share. This operation has directly focused Washington and Wall Street — it's not just a turf war in the crypto circle, but also a limit test of political influence and regulatory red lines!

Burning money to exchange for market! USD1 hard against the two giants

WLFI's calculations are ringing loud: using subsidies to exchange for liquidity, a strategy similar to the traditional tech industry's 'burning money to acquire customers'. Specifically, it will spend in three areas: providing market-making rewards for the USD1 liquidity pool, subsidizing payment companies for settlement connections, and giving cashback to cross-border remittance companies, directly targeting the stablecoin giants USDT and PayPal's PYUSD.

Currently, the market value of USD1 is 3 billion dollars, 1.1 billion less than PYUSD. WLFI insiders have bluntly stated that if they do not rush now, the market will be filled by giants, and the latecomers will have no chance to turn the tables!

Controversy is at its peak: is it real demand or just inflated?

However, this wave of subsidies has faced widespread skepticism across the network:

  • The real demand is in doubt: some institutions checked on-chain data and found that part of USD1's trading volume was artificially inflated by market maker DWF Labs using anonymous wallets; it is still unclear whether there are genuine users.

  • Governance contradictions are prominent: on one hand, buybacks support WLFI prices (contracting circulation), while on the other, money is poured to expand USD1 circulation (increasing supply), with the two routes clashing against each other.

  • Investors' soul-searching question: 'If 120 million is burned and still cannot catch up with PYUSD, who will foot the bill?'

Fortunately, WLFI does not only want to be a 'presidential concept coin': collaborating with Canton Network to deploy USD1 onto a regulated blockchain, standardizing collateral and settlement; partnering with ALT5 Sigma to open up cross-border payment scenarios, aiming to activate the ecology with the closed loop of 'the larger the circulation → the more valuable WLFI governance rights'.

The regulatory sword is hanging high! The red line cannot be crossed.

WLFI's special background makes it closely monitored: the (2025 GENIUS Act) requires relevant White House personnel to declare crypto holdings and prohibits them from intervening in coin prices. To unlock 120 million in treasury funds, WLFI must prove that this is not a transfer of benefits.

Supporters believe that subsidies and buybacks can protect early investors, while opponents worry that large-scale unlocking will dilute the tokens. To put it bluntly, the 120 million invested can buy short-term liquidity but cannot buy long-term credit; political halo can attract attention but will also invite more scrutiny.

In summary, WLFI's gamble this time is on capital efficiency and an ecological closed loop, betting more on regulatory leniency. To shake off the label of 'presidential concept coin' and prove itself as a legitimate financial infrastructure, every step in the upcoming governance voting and on-chain actions cannot go wrong.