World Liberty Financial has initiated a vote to test an onchain airdrop of its USD1 stablecoin to WLFI holders via Ethereum.
Background
- World Liberty Financial (WLF), a crypto project closely linked to the U.S. President Donald Trump, has launched a governance vote to determine whether it will airdrop its newly launched USD1 stablecoin to current holders of WLFI tokens.
- The airdrop proposal aims to test WLF’s smart contract functionality in a live setting using Ethereum mainnet. The team emphasized that the distribution will be “a small amount” and mainly intended for testing and community appreciation.
- The vote, hosted on Snapshot, opened with overwhelming support, with more than 2.6 billion votes (99.97%) in favor and just over 900,000 votes against in the first eight hours. Voting will remain open until May 14.
- USD1, World Liberty’s stablecoin launched in March, is reportedly backed 1:1 with short-term U.S. Treasuries, dollar deposits, and cash equivalents. It has since been integrated into various DeFi ecosystems, including a new pool with Lista DAO, as announced by WLF on X.
Why should you pay attention?
- The airdrop test could be an early preview of WLF’s broader utility roadmap for USD1 and offer real yield opportunities through DeFi protocols.
- USD1 has drawn attention for being involved in a $2 billion deal with Binance via Abu Dhabi-based MGX, signaling growing institutional interest.
- However, political scrutiny continues to surround the project due to its ties to the Trump family, raising broader questions about ethics, governance, and potential conflicts of interest in crypto policy-making.
Who said what?
- World Liberty Financial:
“Testing the airdrop mechanism in a live setting is a necessary step… and a meaningful way to thank our earliest supporters.”
- WLF Snapshot Proposal:
“Even if approved… we reserve the right to modify, suspend, or cancel the airdrop at any time.”
- Senator Richard Blumenthal (D-CT) said:
“[WLFI’s] financial entanglements with President [Trump]… present unprecedented conflicts of interest and national security risks.”
- WLF Announcement on X:
“The USD1/ListaDAO pool is now live, unlocking stable yield + real DeFi utility. The momentum behind USD1 is real — and we’re just getting started.”
Zooming out
- Since its inception in September, World Liberty Financial has raised over $550 million through public token sales. Its aggressive marketing of USD1 alongside high-profile partnerships indicates strategic ambitions to compete in the stablecoin space.
- Yet, WLF’s Trump affiliation continues to attract political pushback. A recent congressional hearing on crypto regulation was boycotted by House Democrats over conflict of interest concerns, reflecting heightened partisan tension around crypto’s role in U.S. policy.
- While WLF’s whitepaper clarifies that the Trump family has no direct ownership or operational control, the project’s branding and leadership narrative remain closely tied to the president.
- The outcome of the USD1 airdrop vote, and its subsequent execution, could serve as a bellwether for WLF’s technical credibility and its ability to deliver on decentralized finance use cases in a politically sensitive environment.
