Donald Trump-backed World Liberty Financial (WLFI) has revealed plans to launch an airdrop campaign for its newly launched USD1 stablecoin.
In a governance proposal, WLFI sought opinions on various aspects of the airdrop including community discussion, finalizing the airdrop amount, determining the distribution method, holding a vote, and many more.
The organization provided three options in the proposal; Yes, No, and Abstain. Since the proposal became available for voting, most community members opted for Yes. Confirming the development on Monday, the company announced that it will share a portion of the token among all eligible $WLFI coin holders.
Furthermore, WLFI said that the initiative will help test the practicality of the USD1 airdrop system’s technical functionality. Also, the organization stated that the program is an avenue to reward early backers of the new project.
In what is described as testing of the stablecoin’s onchain airdrop system of the stablecoin, WLFI is using the proposal to enhance the market visibility and awareness of the new token before full launch. Meanwhile, the organization has yet to establish the initial amount of the airdrop or the distribution schedule.
However, emerging pointers indicated that World Liberty Financial will fund the airdrop and it will occur on the Ethereum mainnet network. More so, WLFI hinted that even if the proposal gains community approval, the company has the right to discontinue, suspend, modify, or terminate the program. Likesiwee, WLFI opined that it has the right to add more eligibility terms for the test airdrop.
Criticism against WLFI
Launched in 2024, World Financial Liberty is a decentralized finance project with connections to current US president, Donald Trump, and his affinity to WLFI is generating serious controversies. Since its establishment, the project has raised more than $550 million from investors with Tron Founder and crypto billionaire, Justin Sun investing more than $75 million.
Trump, including most of his family members, are board associates of WLFI. Reports accused the Trump family of receiving more than 60% of the company’s revenue, including a 70% return on token sales.
Last month, WLFI revealed plans to launch a dollar-pegged stablecoin, USD1 that is fully supported by US Treasuries, dollars, and other cash equivalents. US legislators are concerned that the increasing involvement of the president can mar the integrity of the crypto regulatory regime the new administration is building.
As a result, US Democrats are pushing for an amendment to the STABLE Act to prevent serving presidents, cabinet members, and their relatives from launching a stablecoin while in active service.
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