TLDR
- World Liberty Financial (WLFI) launched a governance proposal to airdrop USD1 stablecoin to early supporters
- The governance vote shows 99.97% approval and will close on May 14, 2025
- USD1 is fully collateralized by US Treasuries, cash, and high-quality assets with BitGo as custodian
- The airdrop serves as both a technical test and a reward for early WLFI token holders
- WLFI has raised $550 million from 85,000 investors through two public token sales
The Trump-connected crypto project World Liberty Financial is moving forward with plans to reward its earliest backers. A governance vote has been opened to approve an airdrop of the platform’s new USD1 stablecoin to holders of the WLFI token.
The proposal, posted on May 6, has received overwhelming community support. Current voting shows nearly unanimous approval with 99.97% voting in favor of the airdrop. This represents about 2.6 billion tokens cast in support of the initiative.
The vote will remain open until May 14, giving community members one week to participate in the decision. Those against the measure currently account for just 901,000 votes, making up only 0.03% of the total votes cast so far.
According to the governance proposal, the planned distribution serves two main purposes. First, it will allow WLFI to test its airdrop mechanism in a live environment. Second, it provides a way to thank early supporters by giving them direct access to the new USD1 stablecoin.
Building a Fully-Backed Alternative
The USD1 stablecoin takes a different approach from many crypto assets. Unlike algorithmic stablecoins that use complex mechanisms to maintain their peg, USD1 is fully backed by real-world assets.
WLFI co-founder Zach Witkoff emphasized this distinction. “USD1 provides what algorithmic and anonymous crypto projects cannot—access to the power of DeFi underpinned by the credibility and safeguards of the most respected names in traditional finance,” he stated.
WLF fam — it’s time.
A new Snapshot vote is live to airdrop USD1 to all eligible $WLFI holders.
Free USD1. The hottest stablecoin in crypto 🦅
Don’t miss your chance — vote now:https://t.co/Cv99dBiPh1— WLFI (@worldlibertyfi) May 6, 2025
The reserves backing USD1 consist of short-term U.S. Treasury securities, cash, and other high-quality assets. Digital asset custodian BitGo has been selected to oversee these reserves, adding a layer of institutional credibility to the stablecoin.
The actual launch of USD1 happened quietly in early March 2025. Blockchain analytics firm LookOnChain first spotted activity, tracing the contract to a wallet linked to crypto market maker Wintermute. This suggested early testing was underway.
On March 24, crypto figure CZ noted that the stablecoin’s smart contract had been deployed 20 days earlier. WLFI made its formal announcement the following day on March 25, confirming the stablecoin would first launch on Ethereum and Binance Smart Chain, with plans to expand to additional blockchains later.
Market Timing and Distribution Details
The announcement comes during a period of major growth for dollar-pegged stablecoins. A recent Citigroup report found that the market cap of US dollar stablecoins exceeded $230 billion in April 2025, showing 54% growth since the previous year.
WLFI itself has seen strong growth since launching in September. The platform has completed two public token sales, raising a combined $550 million from approximately 85,000 registered holders.
The exact amount of USD1 to be distributed in the airdrop has not yet been determined. According to the proposal, the final distribution amount will depend on the number of eligible wallets and the budget allocated for the test.
No date has been set for the airdrop. The platform has stated it reserves the right to “discontinue, suspend, modify or terminate the test airdrop” at any time, maintaining flexibility as it moves forward with the initiative.
Only wallets holding WLFI tokens will be eligible for the airdrop, though specific criteria for qualification have not been detailed. The test appears focused on both verifying technical capabilities and building goodwill within the community.
This move puts WLFI in competition with major stablecoin players like Tether (USDT) and USD Coin (USDC), which currently control about 90% of the dollar stablecoin market. By launching USD1 with an airdrop to existing supporters, WLFI aims to jumpstart adoption of its new product.
The timing also coincides with other countries developing stablecoins pegged to non-USD currencies. In late April, three major Abu Dhabi institutions announced a joint initiative to create a dirham-pegged stablecoin. Similarly, a Russian finance ministry official recently proposed developing a ruble-backed stablecoin following US sanctions on Russian exchange Garantex.
For now, WLFI token holders can expect more details about the potential USD1 airdrop after the governance vote concludes on May 14, 2025.
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