Trump’s Crypto Venture WLFI to Reward Early Supporters with USD1 Airdrop

Trump’s Crypto Venture WLFI to Reward Early Supporters with USD1 Airdrop

TLDR:

• World Liberty Financial plans to airdrop its USD1 stablecoin to WLFI token holders as a system test
• The Trump-linked project has already raised $550 million, with $390 million reportedly going to Trump family entities
• USD1 stablecoin launched in late March on Ethereum and BNB Chain
• The proposal comes amid congressional debates over the STABLE Act and potential conflicts of interest
• Democrats are pushing for amendments to bar sitting presidents from launching stablecoins while in office

World Liberty Financial (WLFI), a decentralized finance project backed by President Donald Trump, has proposed distributing a small amount of its newly launched USD1 stablecoin to eligible WLFI token holders. The announcement, made on Monday, frames the distribution as both a technical test of its airdrop system and a gesture of gratitude to early supporters.

🦅 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

The proposal states the test would “validate the technical functionality of its airdrop system in a live environment while thanking early supporters of the project.” It also aims to boost “visibility and awareness” of the USD1 stablecoin before full-scale deployment.

“Testing the airdrop mechanism in a live setting is a necessary step to ensure smart contract functionality and readiness,” WLFI explained in the proposal.

The exact amount of USD1 to be distributed and the timing remain under development. The airdrop will occur on the Ethereum Mainnet and be funded directly by WLFI.

WLFI maintains the right to “discontinue, suspend, modify, or terminate the test airdrop at any time as well as to establish any additional eligibility requirements,” even if the proposal receives approval.

Project Growth and Structure

The Trump-backed project launched its USD1 stablecoin in late March on both Ethereum and Binance’s BNB Chain, according to on-chain data. This development follows months of planning by the Trump family and business partners.

WLFI was initially launched last September and has attracted substantial investment. The project has raised $550 million through token sales, with $390 million reportedly paid to DT Marks DEFI LLC, an entity linked to the Trump family.

The USD1 stablecoin is backed by U.S. Treasuries and managed by custodian BitGo. However, the platform’s governance token currently remains non-transferable, raising questions about transparency and decentralization.

The proposal for the airdrop outlines a detailed plan that includes community discussion, finalizing the distribution amount, determining the execution method, holding a governance vote, and publicly announcing the distribution details.

Political Controversy

The project’s close ties to President Trump have sparked political debate. The launch of USD1 coincided with congressional discussions of the bipartisan STABLE Act, raising concerns about potential conflicts of interest.

Lawmakers have expressed worry that Trump’s financial stake in WLFI could compromise the integrity of stablecoin regulation. These concerns intensified during a recent House Financial Services Committee markup session.

Democrats have pushed for amendments to the STABLE Act that would bar sitting presidents, cabinet members, and their families from launching stablecoins while in office.

Senator Elizabeth Warren and Representative Maxine Waters recently demanded that the SEC turn over all records related to WLFI. They cited concerns about potential “regulatory favoritism” and the agency’s decision to pause certain enforcement actions.

One such paused action involved WLFI investor and Tron founder Justin Sun. This has added to the controversy surrounding the project’s regulatory treatment.

Despite these political headwinds, the governance proposal for the test airdrop appears to be gaining support. Since being posted, the majority of voters have selected “Yes” from the three available options: Yes, No, or Abstain.

The test airdrop represents a step toward wider adoption of the USD1 stablecoin. WLFI has also tested stablecoin transfers between BNB Chain and Ethereum, with market maker Wintermute participating in these tests.

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