World Liberty Financial (WLFI), the DeFi venture partly owned by US President Donald Trump, has launched a proposal to distribute its upcoming stablecoin, USD1, to existing WLFI token holders.
The initiative is intended to test the airdrop infrastructure in a live environment and show appreciation to the project’s early backers.
According to WLFI, the airdrop aims to achieve three main objectives. First, it will validate the technical readiness of the airdrop system in a live environment. Second, it will introduce the USD1 stablecoin to the community before its public rollout. Finally, it will reward early adopters for their support.
All current WLFI holders will be eligible to receive a set amount of USD1. However, the final amount per wallet will be determined based on the number of qualified participants and available resources.
Although the proposal has gained strong support within the WLFI community, the company has clarified that it reserves the right to cancel or suspend the airdrop at any point, even after approval.
USD1 raises concerns
USD1 is designed to be a fully collateralized stablecoin, maintaining a 1:1 peg with the US Dollar. Short-term US Treasuries, fiat currency reserves, and other liquid cash equivalents will back it.
The initial launch will take place on Ethereum and Binance Smart Chain, with expansion to additional blockchain networks planned for the future.
Despite growing community support for the proposal, WLFI and USD1 have come under political scrutiny. Democratic lawmakers, led by Senator Elizabeth Warren, have raised concerns over potential conflicts of interest tied to the Trump family’s involvement.
Agencies like the Securities and Exchange Commission (SEC) and the Federal Reserve have reportedly been asked to review whether that connection could affect regulatory oversight.
WLFI has reportedly not responded directly to these inquiries.
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