- World Liberty Financial’s team has proposed USD1 stablecoin airdrop intended as a technical test and reward for early supporters.
- Nevertheless, this move has sparked political controversy due to the project’s financial ties to the Trump family and ongoing debates about stablecoin regulation.
Just weeks after World Liberty Financial launched its stablecoin, the team has announced a proposal to airdrop a portion of the newly launched USD1 stablecoin. Launched on both Ethereum and Binance’s BNB Chain, the stablecoin airdrop is supposed to be issued to eligible stablecoin holders.
This move is also meant to be a live test of the projects on-chain airdrop mechanism while at the same time be used to reward early supporters as well as boost visibility of the stablecoin.
As per the official team, the airdrop is meant to validate the technical functionality of the system and ensure smart contract readiness before the official release.
Notably, the team has laid out a detailed timeline plan which will see community discussions, a governance vote, and a final public announcement of the airdrop’s details. While the team has not officially announced the exact amount and distribution date, what’s known is that the airdrop will be funded by WLFI and conducted on the Ethereum mainnet.
In order to showcase democracy, the community members have been given three options to express their stature on the airdrop including Yes, No, or Abstain. Notably, as of Monday evening, the majority of votes had been cast in favor of the airdrop.
Despite its technical intentions, WLFI’s move has attracted political attention. Critic’s point out that the project, launched in September 2024, has already raised $550 million through two rounds of WLFI token sales. Of that amount, a staggering $390 million reportedly went to DT Marks DEFI LLC, an entity linked to the Trump family.
Critics argue that such a close financial connection to a sitting or former president undermines impartiality in regulatory processes.
That’s not all, the announcement comes amidst ongoing congressional debates over the bipartisan STABLE Act. This act seeks to impose new rules on stablecoin issuers. Lawmakers, including Sen. Elizabeth Warren (D-MA) and Rep. Maxine Waters (D-CA), have raised red flags about Trump’s financial interest in WLFI, accusing regulators of “regulatory favoritism.”
Not long ago, the duo demanded the SEC release all internal documents related to the firm, especially in light of the agency’s paused enforcement actions against WLFI investor and Tron founder Justin Sun.
Adding to the scrutiny, the project is facing questions and wrath around decentralization and transparency because until now, WLFI governance token remains non-transferable. While the platform’s leadership maintains the airdrop is a purely technical test, critics see it as a political stunt aimed at shoring up support for Trump’s broader pro-DeFi stance heading into the election season.
Nevertheless, WLFI’s momentum continues to build. With a high-profile backer, a massive war chest, and an ambitious roadmap, the project’s next steps. Meanwhile, at the time of writing, WLFI is swapping hands with $0.000000001356 marking a 24.02% surge in the past 24 hours.
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