Trump-backed World Liberty Monetary Proposes USD1 Airdrop to Early Supporters – Decrypt

On Monday, World Liberty Monetary (WLFI), a decentralized finance undertaking backed by President Donald Trump, introduced a proposal to distribute a small quantity of its newly launched USD1 stablecoin to all eligible WLFI token holders. The check, the corporate wrote, would “validate the technical performance of its airdrop system in a dwell atmosphere whereas thanking early supporters of the undertaking.”
🦅 We simply posted a brand new governance proposal:
To check our airdrop performance by distributing USD1 to all $WLFI holders — rewarding our earliest supporters and getting ready for future development.
Be part of the dialogue 👇
— WLFI (@worldlibertyfi) April 7, 2025Framed as a check of its on-chain airdrop system, the proposal seeks to reward early adopters and increase “visibility and consciousness” of its stablecoin USD1 earlier than full-scale deployment.“Testing the airdrop mechanism in a dwell setting is a essential step to make sure good contract performance and readiness,” the proposal mentioned.The precise airdrop quantity and timing are nonetheless being finalized, although it can happen on Ethereum Mainnet and be funded by WLFI.“Even when accredited, World Liberty Monetary, Inc. reserves the correct to discontinue, droop, modify, or terminate the check airdrop at any time in addition to to determine any further eligibility necessities,” the Trump-linked agency wrote.WLFI’s proposal additionally lays out an in depth plan together with group dialogue, finalization of the airdrop quantity and execution methodology, a governance vote, and at last, public announcement of the distribution. The voters are supplied three choices: Sure, No, or Abstain, with the bulk having chosen ‘Sure’ because the proposal was posted 7 hours in the past.WLFI’s Political Ties Set off Backlash Since WLFI launched USD1 in late March, simply as Congress started debating the bipartisan STABLE Act, lawmakers have sounded alarms over Trump’s monetary stake within the undertaking, warning it might compromise the integrity of the regulation.WLFI, launched final September, has already raised $550 million via token gross sales, with $390 million reportedly paid out to Trump family-linked entity DT Marks DEFI LLC. The agency’s stablecoin USD1 is collateralized by U.S. Treasuries and managed by custodian BitGo, however the platform’s governance token stays non-transferable, including to considerations over transparency and decentralization.Tensions exploded throughout a current Home Monetary Providers Committee markup of the invoice as  Democrats pushed for amendments that may bar sitting presidents, cupboard members, and their households from launching stablecoins whereas in workplace.In the meantime final week, Sen. Elizabeth Warren (D-MA) and Rep. Maxine Waters (D-CA) demanded the U.S. Securities and Alternate fee (SEC) to show over all inner information associated to WLFI, citing potential “regulatory favoritism” and the company’s resolution to pause enforcement actions, together with one involving WLFI investor and Tron founder Justin Solar.Each day Debrief NewsletterStart day by day with the highest information tales proper now, plus unique options, a podcast, movies and extra.