In a bold new move, World Liberty Financial (WLFI) — a decentralized finance project backed by former President Donald Trump — has announced a proposal to airdrop its newly launched USD1 stablecoin to early supporters.
The goal? According to WLFI, it’s a test to ensure that its on-chain airdrop system works flawlessly in a live environment. But it’s also a way to reward loyal token holders and bring more attention to USD1 before its full-scale rollout.
“Testing the airdrop mechanism in a live setting is a necessary step to ensure smart contract functionality and readiness,” the team shared in the proposal.
Although the exact airdrop amount and launch date haven’t been finalized yet, it’s confirmed that the test will happen on the Ethereum Mainnet and will be funded directly by WLFI. Eligible WLFI token holders are set to benefit from this early-phase distribution — if the community approves it.
Right now, community sentiment is leaning in favor, with the majority voting “Yes” just hours after the proposal went live.
WLFI has already raised $550 million through token sales, with reports indicating that $390 million was paid to a Trump-associated entity, DT Marks DEFI LLC. This connection has raised eyebrows in Washington.
USD1 is said to be backed by U.S. Treasuries and managed by custodian BitGo, but critics have pointed out that WLFI’s governance token is currently non-transferable, leading to ongoing concerns about decentralization and transparency.
Last week, tensions escalated when Senator Elizabeth Warren and Representative Maxine Waters urged the SEC to release all internal records involving WLFI. They’ve accused the agency of regulatory favoritism, particularly in light of enforcement pauses involving high-profile figures like Tron founder Justin Sun, who is also an investor in WLFI.
Meanwhile, Democrats in the House Financial Services Committee are pushing for amendments to the STABLE Act that would prohibit sitting presidents and their families from launching stablecoins while in office — a clear response to WLFI’s political links.
Whether you're a crypto enthusiast or simply watching the political implications unfold, WLFI's USD1 airdrop proposal is shaping up to be a major flashpoint. If approved, it could mark a new chapter in the ongoing conversation around DeFi, regulation, and political influence in Web3.
Stay tuned for updates on the airdrop timeline, eligibility, and how it might affect the broader crypto market.
By clicking "Accept", you agree to the storing of cookies on your device to enhance site navigation, analyze site usage and assist in improving your experience.
