TLDR

Table of Contents

World Liberty Financial (WLFI), backed by President Trump, proposed a test airdrop of USD1 stablecoin to WLFI token holders
The airdrop aims to validate technical functionality while rewarding early supporters
WLFI has raised $550 million through token sales, with $390 million reportedly going to Trump family-linked entity
Democrats have pushed for amendments to bar sitting presidents from launching stablecoins while in office
The USD1 stablecoin launched in March 2025 on Ethereum and BNB Chain

World Liberty Financial (WLFI), the decentralized finance project backed by President Donald Trump, announced a proposal on Monday to distribute its newly launched USD1 stablecoin to eligible WLFI token holders. The company described the initiative as a test of its airdrop system in a live environment while simultaneously rewarding early supporters of the project.

The proposal aims to validate the technical functionality of WLFI’s airdrop mechanism before full-scale deployment. “Testing the airdrop mechanism in a live setting is a necessary step to ensure smart contract functionality and readiness,” the proposal stated.

🦅 We just posted a new governance proposal:
To test our airdrop functionality by distributing USD1 to all $WLFI holders — rewarding our earliest supporters and preparing for future growth.
Join the discussion 👇https://t.co/NDg5yMYUrM
— WLFI (@worldlibertyfi) April 7, 2025

According to the announcement, all wallets currently holding WLFI tokens would be eligible to receive a fixed amount of USD1. The exact distribution amount has not yet been finalized and will be determined based on the total number of eligible wallets and available budget.

The planned airdrop would take place on the Ethereum Mainnet with funding provided by WLFI. While the timing remains undetermined, the proposal outlines a detailed plan including community discussion, finalization of airdrop amounts, a governance vote, and public announcement of the distribution.

Project Background and Growth

WLFI launched in September 2024 and has already raised $550 million through token sales. Reports indicate that $390 million of these funds were paid to DT Marks DEFI LLC, an entity linked to the Trump family.

The project introduced its USD1 stablecoin in late March 2025. This digital asset is currently available on both Ethereum and Binance’s BNB Chain networks.

The USD1 stablecoin is collateralized by U.S. Treasuries and managed by custodian BitGo. However, the platform’s governance token remains non-transferable, raising questions about transparency and decentralization.

WLFI has also tested USD1 stablecoin transfers between BNB Chain and Ethereum, with market maker Wintermute participating in these tests. The company appears to be targeting institutional and sovereign investors with its stablecoin offering.

Political Controversy

The project’s political connections have sparked debate in Washington. Since USD1 launched just as Congress began debating the bipartisan STABLE Act, lawmakers have raised concerns about Trump’s financial stake potentially compromising regulatory integrity.

Tensions escalated during a recent House Financial Services Committee meeting where Democrats pushed for amendments to bar sitting presidents, cabinet members, and their families from launching stablecoins while in office.

Last week, Senator Elizabeth Warren and Representative Maxine Waters requested that the Securities and Exchange Commission (SEC) turn over all internal records related to WLFI. Their demand cited potential “regulatory favoritism” and the agency’s decision to pause enforcement actions, including one involving WLFI investor and Tron founder Justin Sun.

Despite the controversy, early voting on the airdrop proposal shows majority support. Voters have three options: Yes, No, or Abstain, with most selecting “Yes” in the hours since the proposal was posted.

WLFI noted that even if approved, the company “reserves the right to discontinue, suspend, modify, or terminate the test airdrop at any time as well as to establish any additional eligibility requirements.”

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