- WLFI proposes a test airdrop to validate its USD1 stablecoin and reward early supporters.
- The test airdrop aims to confirm smart contract functionality before full-scale deployment.
- Regulatory concerns grow over Trump’s ties to WLFI and its USD1 stablecoin.
World Liberty Financial (WLFI), a decentralized finance platform backed by Donald Trump, has proposed a test airdrop for its USD1 stablecoin. The move aims to distribute a small amount of the stablecoin to eligible WLFI token holders. The initiative comes as part of an effort to validate its airdrop system and reward early supporters.
The airdrop will take place on the Ethereum Mainnet, although specific details about timing and amounts remain under discussion. According to WLFI, the test is designed to confirm smart contract functionality in a live environment. The process will also help increase awareness of USD1 ahead of a wider launch.
Ongoing Governance Vote on Airdrop Proposal
WLFI clarified that, even if approved, the firm may change or cancel the airdrop at any point. It has reserved the right to set further eligibility rules if necessary. Community discussions are ongoing as part of the proposal’s roadmap. The plan includes finalizing the distribution amount, selecting the method of execution, holding a governance vote, and publicly announcing the decision.
Voting is already underway, with token holders choosing between Yes, No, or Abstain. Since the proposal surfaced seven hours ago, the majority of votes have favored approval.
Regulatory Concerns and Financial Ties to Trump Family
WLFI introduced the USD1 stablecoin in late March, coinciding with congressional debates over the bipartisan STABLE Act. Lawmakers have since raised concerns about Trump’s financial ties to the project, fearing it could affect the bill’s integrity.
The USD1 stablecoin is backed by the U.S. Treasuries and managed by custodian BitGo. However, WLFI’s governance token remains non-transferable, fueling concerns over transparency. Critics argue that this structure limits accountability within the platform’s ecosystem.
Growing Scrutiny from Lawmakers and Regulators
WLFI, launched in September, has already secured $550 million through token sales. Reports suggest that $390 million has been directed to DT Marks DEFI LLC, a firm linked to the Trump family. This financial connection has heightened scrutiny from regulators and lawmakers alike.
The House Financial Services Committee saw an intense exchange during their latest meeting. Lawmakers suggested blocking presidents, cabinet members and their family members from introducing stablecoins when they serve as head of government. The proposal reflects growing unease over the influence of political figures in decentralized finance.
Last week, Senator Elizabeth Warren and Representative Maxine Waters urged the Securities and Exchange Commission to release records about WLFI. They cited concerns about regulatory favoritism and questioned the SEC’s decision to pause enforcement actions related to WLFI and its investor, Tron founder Justin Sun.
