Exploring the Emerging Stablecoin Project World Liberty Financial

A stablecoin project backed by US Treasury bonds is about to launch its governance token WLFI. What makes this project unique is the support from prominent American political families, and the initial circulation will only be 5% of the total supply.

On September 1, World Liberty Financial will launch the WLFI token. Some see this as a significant innovation in the value capture model of stablecoins, while others view it as a carefully designed speculative act. Regardless of how it is evaluated, this project is indeed noteworthy and deserves attention.

Project Overview

The core product of World Liberty Financial is the USD1 stablecoin, which claims to be backed by 100% reserves of cash and short-term government bonds.

WLFI serves as the governance layer token. Official documents indicate that the project has direct ties to a certain political family:

• A well-known political figure has been listed as an honorary co-founder.
• Its family members are listed as co-founders
• Companies associated with this family hold a large amount of WLFI coins and are entitled to the major share of the protocol's earnings.

This is not merely a brand effect; the family has substantial financial ties to the project.

The Uniqueness of USD1

Most stablecoins generate revenue through reserves, and this revenue usually belongs to the company. However, WLFI has adopted a different model: the interest generated from the USD1 reserve will be automatically used to repurchase and burn WLFI in the open market through a smart contract.

The capital flow is as follows:

Reserve Fund → Protocol Revenue → WLFI Buyback and Burn → Token Holder Yield Enhancement

This means that WLFI is not only a governance token, but also a deflationary asset linked to real-world cash flows.

Issuance Details

• Date: September 1, 2025
• Exchange: multiple mainstream trading platforms
• Unlocking rules: 20% of the presale tokens can be traded at launch, the remaining part will be locked.
• Initial circulating supply: 5%
• Futures market quote: approximately $0.295

These factors make WLFI a highly promising trading target in this market cycle.

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Institutional Participation Status

Many well-known institutions have already participated in the investment:

• A certain investment institution purchased at a price of 0.10 USD
• A certain fund invested 100 million dollars at a price of approximately 0.125 dollars.
• A listed company invested $1.5 billion to subscribe to 7.5% of the total supply at a price of $0.20 per coin.

It is reported that the latter has also been granted $750 million for the WLFI special acquisition. This means they may not allow the market value to drop significantly, and may even push prices higher.

Considering that only 5% of the circulation is available at the launch, based on a valuation of 20 billion USD, the value of the tradable tokens is approximately 1 billion USD. Those insiders with 750 million USD in funds could theoretically absorb nearly the entire circulating supply.

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Potential Factors for Price Increase

Three key factors:

1. Scarce Circulation: Extremely low supply can lead to severe price fluctuations even with moderate demand.

2. Built-in buying pressure: Every dollar earned from the stablecoin reserves will be used for systematic repurchase of WLFI.

3. Narrative-driven: possessing political endorsement, institutional support, and attributes related to government bonds.

This architecture seems to be born for creating a surge in the market.

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Potential Risks

Fully diluted valuation ( FDV ) is crucial in the long term. This is not a suitable investment for long-term holding.

Investors are betting on: low circulation, high visibility promotion, and institutional investors needing to drive up prices in order to recover costs and make profits according to the token unlocking plan.

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Related Projects

Two small projects are developing around WLFI:

1. Blockstreet (BLOCK): Seen as the launch platform for USD1 cross-chain issuance.

2. Dolomite (DOLO): A lending platform that may achieve deeper integration with USD1.

Both of these projects may experience more severe fluctuations with the performance of WLFI.

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Conclusion

WLFI integrates multiple attributes in one:

• A new stablecoin model, whose returns are supported by government bonds.
• A political experiment combining DeFi with brand influence
• A self-referential financial structure that could achieve astonishing valuations.

Its design includes an extremely low circulation of (5%), massive government bond capital support, and a mechanism that converts real-world profits into sustained buying pressure.

Regardless of the evaluation, the 5% initial circulating supply setting for WLFI has paved the way for a potential surge. This could become a liquidity siphoning event similar to a certain well-known personality's token, with practical functionality, smaller circulation, and more endorsements.

Investors should carefully assess risks and opportunities to make informed investment decisions.

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