World Liberty Financial (WLFI), a decentralized finance project associated with U.S. President Donald Trump, announced on Monday a proposal to conduct a test airdrop of its USD1 stablecoin to eligible WLFI token holders.
According to the proposal, the initiative is intended to enhance visibility for USD1 ahead of its broader launch.
The stablecoin, backed by U.S. Treasuries and managed by custodian BitGo, is part of WLFI’s effort to establish a regulated dollar-pegged digital asset.
WLFI Plans Ethereum-Based USD1 Airdrop
The airdrop, which will occur on Ethereum Mainnet and be funded by WLFI, is still being finalized in terms of distribution amount and timeline.
“Testing the airdrop mechanism in a live setting is a necessary step to ensure smart contract functionality and readiness,” the proposal stated.
However, the company reserves the right to alter or cancel the test at any time and may impose additional eligibility requirements.
The proposal outlines a multi-phase process: community feedback, finalization of the distribution plan, a governance vote, and an official announcement.
Voters can select from “Yes,” “No,” or “Abstain,” and early voting trends show a majority in favor of the test.
WLFI launched USD1 in March, coinciding with congressional discussions over the bipartisan STABLE Act.
Critics have raised concerns over Trump’s financial ties to the project, including $390 million reportedly allocated to DT Marks DEFI LLC, a Trump-affiliated entity, from the $550 million raised during token sales.
The platform’s governance token remains non-transferable, raising additional questions about transparency and decentralization.
Tensions have escalated in Washington, with Democratic lawmakers pushing amendments to the STABLE Act that would prohibit sitting presidents and their families from launching stablecoins.
Meanwhile, Sen. Elizabeth Warren and Rep. Maxine Waters have called on the SEC to release internal documents related to WLFI, citing concerns over “regulatory favoritism.”
The scrutiny follows the SEC’s recent decision to pause enforcement actions, including one involving Justin Sun, a WLFI investor and founder of the Tron blockchain.
Trump Family’s World Liberty Financial Concludes Token Sale
Last month, WLFI completed its token sale, raising an impressive $550 million and ranking among the most successful in crypto history.
The public sale of WLFI’s governance token began on October 15, initially targeting a $300 million raise.
The project offered 20 billion tokens at $0.015 each, restricted to whitelisted investors.
However, early demand fell short, generating only $11 million from the sale of 766 million tokens, prompting the team to revise its target down to $30 million.
Momentum shifted after the launch of Official Trump (TRUMP) and Melania Meme (MELANIA), two Trump-themed tokens that surged in popularity.
Their success fueled renewed interest in WLFI, leading to stronger participation in its token sale.
By January 20, the initial sale had closed with 20% of the token supply sold. Seizing the opportunity, the project issued an additional 5 billion WLFI tokens at $0.05 each.
Demand remained high, and by March 13, 99% of the newly released tokens had been sold.
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