Trump-Backed WLFI Proposes Airdrop Test for USD1 Stablecoin

World Liberty Financial (WLFI), backed by the Trump family, announced a new governance proposal to test its airdrop system by distributing its USD1 stablecoin to WLFI token holders.

The move comes shortly after the decentralized finance (DeFi) project launched the stablecoin in late March.

World Liberty Financial Eyes USD1 Stablecoin Airdrop

WLFI’s initiative serves three primary goals. First, it seeks to validate the project’s technical infrastructure. Secondly, it serves as a reward mechanism for early supporters, and lastly, it aims to increase USD1’s visibility ahead of a broader rollout.

“Testing the airdrop mechanism in a live setting is a necessary step to ensure smart contract functionality and readiness. This distribution also serves as a meaningful way to thank our earliest supporters and introduce them to USD1,” the proposal read.

The airdrop will distribute a fixed amount of USD1—a stablecoin pegged to the US dollar and backed by assets like US Treasuries—to all eligible WLFI holders on the Ethereum (ETH) mainnet. 

The exact amount per wallet will be determined based on the total number of eligible wallets and WLFI’s budget. In addition, the company reserves the right to modify or terminate the test at its discretion.

Interestingly, comments in the proposal reflect strong community support. The general consensus is likely in favor of a USD1 stablecoin airdrop.

“I believe it is a very valid proposal, which serves both to keep the community engaged and to test the network for implementation. Therefore, I believe it is a positive measure for both holders and the institution. Let’s go ahead, let’s design in order to build,” a user wrote.

The next step would include finalizing the details of the airdrop. Afterward, the proposal will proceed to a governance vote. The voting options will include “Yes” to approve the airdrop, “No” to reject it, and “Abstain” for those who wish not to vote. This process ensures transparency and community involvement in the decision-making process.

Meanwhile, the proposal emerges amid intensified scrutiny of the Trump family’s role in the cryptocurrency venture.

On April 2, Senator Elizabeth Warren and Representative Maxine Waters sent a letter to SEC acting chair Mark Uyeda. The lawmakers requested that the SEC preserve all records and communications related to World Liberty Financial.

They also requested access to information to clarify how the Trump family’s financial stake in WLFI might be influencing SEC operations. Additionally, they expressed concerns that this potential conflict of interest could undermine the SEC’s mission to protect investors and ensure fair, orderly markets.

“The Trump family’s financial stake in World Liberty Financial represents an unprecedented conflict of interest with the potential to influence the Trump Administration’s oversight—or lack thereof—of the cryptocurrency industry, creating an obvious incentive for the Trump Administration to direct federal agencies, including the SEC, to take positions favorable to cryptocurrency interests that directly benefit the President’s family,” the letter read.

Earlier, Senator Warren and five other democrats had sent a letter to the Federal Reserve and the OCC, raising similar concerns.