, the Trump-linked crypto venture, created $25 million worth of new digital dollars on Monday morning and permanently destroyed another $3 million, data shows, as the project continues to manage fallout from a borrowing arrangement that locked other users out of their funds on a third-party lending platform.
The $25 million in newly created tokens are in USD1, a dollar-pegged digital currency that WLFI issues and controls. Creating new stablecoin tokens, known in crypto as “minting,” is how the issuer adds supply to the market.
Separately, WLFI removed $3 million in existing USD1 from circulation by sending them to a dead-end address from which they can never be retrieved, a process known as “burning.” The net result is $22 million in additional USD1 entering circulation.
The activity follows WLFI’s statement last week, posted in response to CoinDesk’s reporting on the Dolomite transactions, that it had repaid $25 million of the roughly $75 million it borrowed against its own governance token.
The venture deposited billions of WLFI tokens as collateral and borrowed stablecoins that were partially routed to Coinbase Prime, pushing Dolomite’s USD1 lending pool to near-100% utilization and leaving other depositors unable to fully withdraw.
Monday’s mint was funded through BitGo Custody and executed via WLFI’s USD1 Mint Authority contract. The 3 million USD1 burn moved from an address starting 0x2ce to the TokenGovernor contract before being sent to the null address, permanently removing the tokens from circulation.
TokenGovernor is a smart contract that controls USD1’s rules — who can mint, who can burn, supply caps, permissions. Think of it as the administrative backend that enforces the stablecoin’s operating policies on-chain.
Smaller test transactions of $10, $10,000, and $40,800 in USD1 were sent to a previously inactive address in the hours before the mint, a pattern consistent with wallet verification ahead of larger transfers.
The net effect is a $22 million increase in USD1 circulation. The simultaneous mint and burn indicates active supply management rather than a simple expansion.
However, the burn raises its own question of where those 3 million USD1 came from and why they were retired rather than redeployed.
Stablecoin issuers routinely burn tokens when collateral is redeemed, but WLFI has not disclosed the specific reason.
It is not yet clear whether the newly minted USD1 is intended to replenish Dolomite’s lending pool, fund additional treasury operations, or serve another purpose.
WLFI’s governance token has fallen roughly 15% since CoinDesk first reported the Dolomite transactions on April 9. Dolomite co-founder Corey Caplan is an advisor to World Liberty Financial.
CoinDesk has reached out to World Liberty Financial for comment in European morning hours.