TLDR
Table of Contents
- World Liberty Financial (WLFI), a DeFi project backed by President Trump, has proposed a small USD1 stablecoin airdrop to test its distribution system
- The airdrop would be available to all current WLFI token holders on Ethereum Mainnet
- WLFI has raised $550 million through token sales with $390 million reportedly paid to Trump family-linked entity
- Congressional Democrats have raised concerns about Trump’s financial ties to the crypto project
- The USD1 stablecoin launched in March 2025 on Ethereum and BNB Chain
World Liberty Financial (WLFI), a decentralized finance project backed by President Donald Trump, announced on Monday a proposal to distribute small amounts of its USD1 stablecoin to current WLFI token holders. The company framed the initiative as a test of its airdrop system while also rewarding early supporters.
According to the proposal, the test aims to “validate the technical functionality of its airdrop system in a live environment while thanking early supporters of the project.” WLFI also noted that the test would help boost “visibility and awareness” of its USD1 stablecoin before full-scale deployment.
The company stated that “testing the airdrop mechanism in a live setting is a necessary step to ensure smart contract functionality and readiness.” The exact airdrop amount and timing are still being determined, though the distribution will occur on Ethereum Mainnet and be funded directly by WLFI.
🦅 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
All wallets currently holding WLFI tokens would be eligible to receive a fixed amount of USD1, subject to requirements that will be determined by the firm. The proposal outlines several next steps, including community discussion, finalizing distribution details, conducting a governance vote, and public announcement.
WLFI has reserved 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. Voters are currently offered three options: Yes, No, or Abstain, with the majority having selected ‘Yes’ since the proposal was posted.
Political Connections and Financial Stakes
The airdrop proposal comes at a time when WLFI’s political connections have drawn scrutiny. The project launched its USD1 stablecoin in late March 2025, coinciding with Congressional debates over the bipartisan STABLE Act, which aims to regulate stablecoins.
WLFI, which launched in September, has already raised $550 million through token sales. Reports indicate that $390 million of these funds were paid out to DT Marks DEFI LLC, an entity linked to the Trump family.
The USD1 stablecoin is reportedly collateralized by U.S. Treasuries and managed by custodian BitGo. However, the platform’s governance token remains non-transferable, which has raised questions about the project’s transparency and decentralization.
Democrats in Congress have voiced concerns over Trump’s financial stake in the project. During a recent House Financial Services Committee markup of the STABLE Act, tensions rose as Democrats pushed for amendments that would bar sitting presidents, cabinet members, and their families from launching stablecoins while in office.
Last week, Sen. Elizabeth Warren (D-MA) and Rep. Maxine Waters (D-CA) requested that the U.S. Securities and Exchange Commission (SEC) turn over all internal records related to WLFI. They cited concerns about potential “regulatory favoritism” and the agency’s decision to pause certain enforcement actions, including one involving WLFI investor and Tron founder Justin Sun.
Technical Implementation and Market Context
According to the proposal, the test airdrop will be executed on Ethereum, though WLFI’s USD1 stablecoin is currently available on both Ethereum and Binance’s BNB Chain. The team has already tested USD1 stablecoin transfers between these two blockchains, with market maker Wintermute participating in the tests.
The airdrop test comes as the global crypto market shows signs of recovery. Current data indicates that the global crypto market cap stands at $2.51 trillion, representing a 1.15% increase over the previous day. Trading volume has also seen a 109.26% increase, reaching $203.35 billion over the last 24 hours.
The timing of this test may be strategic, as it coincides with broader economic tensions. Some observers have noted that Trump’s aggressive tariff approach has created economic uncertainty, with some countries reportedly boycotting American products in response.
In this climate, the Trump-backed WLFI project appears to be building momentum in the crypto space, using the airdrop test as a way to expand its user base and increase adoption of its stablecoin.
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