USD1 puts users at the center with innovative rewards, reshaping how stablecoins are embraced in the DeFi landscape

World Liberty Financial (WLFI) has revealed it will distribute 8.4 million

tokens to early supporters of its stablecoin, representing the inaugural major reward event of the USD1 Points Program. This campaign, which saw $500 million in trading activity across six leading crypto exchanges within just two months, is designed to encourage ongoing use of USD1 and broaden its role in decentralized finance (DeFi) and practical applications, according to .

The token distribution, which will occur in multiple stages, benefits users who have actively traded USD1 pairs or maintained balances on partner platforms such as KuCoin, Gate.

, MEXC, LBank, HTX, and Flipster. Each exchange has set its own requirements and schedules for eligibility and distribution, highlighting the program’s decentralized approach to rewarding participants, as noted by . World Liberty stated that these incentives are part of a larger plan to boost liquidity for USD1 pairs and support the ecosystem’s long-term development.

The USD1 Points Program has already generated substantial momentum for the stablecoin, which now stands as the world’s sixth-largest stablecoin with a market cap of $2.98 billion, according to

. The program’s achievements highlight the increasing popularity of loyalty schemes based on stablecoins, where users can earn rewards for everyday actions like trading or holding USD1. Zack Witkoff, CEO of World Liberty, emphasized the program’s focus on making USD1 a “user-centric” asset, and mentioned that upcoming phases will introduce new trading pairs, DeFi features, and tokenization of real-world assets, as reported by .

This airdrop also reflects growing institutional interest in USD1. Earlier this year, Abu Dhabi-based MGX investment group used USD1 to complete a $2 billion investment on Binance, a milestone for the stablecoin, according to

. Despite recent price swings—WLFI has dropped nearly 70% from its peak—World Liberty is committed to expanding USD1’s applications. Forthcoming initiatives include a debit card that works with Apple Pay and collaborations with miners to tokenize assets like commodities and real estate, a topic previously reported by The Block.

Experts see the rewards initiative as a calculated effort to strengthen USD1’s position in the market. The $500 million surge in just two months points to robust user engagement, especially on exchanges like Gate.io and KuCoin, where USD1 trading activity has increased sharply. Nonetheless, the project still faces hurdles, such as regulatory concerns over reserve transparency and rivalry from established stablecoins like

and . The future growth of World Liberty will hinge on how well it delivers on its plans to expand into DeFi and real-world applications.