World Liberty Financial (WLFI), a decentralized finance initiative linked to former President Donald Trump, made headlines on Monday by unveiling a proposal for a test airdrop of its USD1 stablecoin to qualifying WLFI token holders.
The proposal outlines that the airdrop aims to boost the visibility of USD1 in advance of its wider launch.
This stablecoin is supported by U.S. Treasuries and overseen by custodian BitGo, positioning it as part of WLFI’s strategy to create a regulated dollar-pegged digital asset.
WLFI to Conduct Ethereum-Based USD1 Airdrop
The airdrop, set to take place on the Ethereum Mainnet and financed by WLFI, is still under development regarding the specifics of the distribution amount and schedule.
“Testing the airdrop mechanism in a live setting is a necessary step to ensure smart contract functionality and readiness,” the proposal states.
However, WLFI reserves the right to modify or cancel the test at any moment and may implement additional eligibility requirements as deemed necessary.
The documented plan features a multi-phase approach, which includes gathering community feedback, finalizing the distribution strategy, holding a governance vote, and making an official announcement.
Voting participants can cast their votes as “Yes,” “No,” or “Abstain,” with early voting trends indicating a majority supporting the proposed test.
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
WLFI introduced USD1 in March alongside deliberations in Congress regarding the bipartisan STABLE Act.
However, concerns have been voiced about Trump’s financial connections to the initiative, particularly regarding a reported $390 million infusion to DT Marks DEFI LLC, a company associated with Trump, from the $550 million raised during token sales.
The governance token for the platform remains non-transferable, raising further questions regarding transparency and the project’s decentralization.
Tensions in Washington have surged, with Democratic lawmakers advocating for amendments to the STABLE Act aimed at preventing sitting presidents and their families from launching stablecoins.
Additionally, Senators Elizabeth Warren and Maxine Waters have urged the SEC to disclose internal documents tied to WLFI, expressing concerns over potential “regulatory favoritism.”
This scrutiny comes in the wake of the SEC’s recent decision to freeze enforcement actions, including one concerning Justin Sun, a WLFI investor and founder of the Tron blockchain.
Token Sale Successfully Concludes for Trump’s World Liberty Financial
In a significant development last month, WLFI successfully wrapped up its token sale, amassing $550 million, making it one of the most prosperous sales in the history of cryptocurrency.
The public offering of WLFI’s governance token commenced on October 15, initially targeting a $300 million fundraising goal.
The project made available 20 billion tokens at a price of $0.015 each, exclusively for whitelisted investors.
Nevertheless, initial interest was tepid, generating merely $11 million from the sale of 766 million tokens, which necessitated a downward revision of the fundraising goal to $30 million.
A boost in momentum followed the launch of Official Trump (TRUMP) and Melania Meme (MELANIA), two tokens themed around Trump that gained remarkable traction.
This newfound popularity invigorated interest in WLFI, resulting in stronger engagement in its token sale.
By January 20, the original sale had concluded with 20% of the token inventory sold. Capitalizing on the opportunity, WLFI issued an additional 5 billion tokens priced at $0.05 each.
High demand persisted, and by March 13, only 1% of the newly issued tokens remained unsold, reflecting a strong market interest.
The post Trump-Linked World Liberty Financial Proposes USD1 Stablecoin Airdrop to WLFI Holders appeared first on Cryptonews.
