World Liberty Financial (WLFI), the decentralized finance (DeFi) project backed by President Donald Trump and his sons, has announced a proposal to conduct a test airdrop of its stablecoin, USD1, to current WLFI token holders. The initiative is intended to evaluate the platform’s on-chain airdrop infrastructure and reward early adopters.
According to the proposal released on April 7, 2025, WLFI plans to distribute a fixed amount of USD1 to each eligible wallet holding WLFI tokens. The exact amount and eligibility criteria have yet to be finalized and will depend on the total number of qualifying wallets and the available budget. The airdrop will occur on the Ethereum Mainnet.
The proposal outlines a multi-phase process: gathering community feedback, finalizing the distribution plan, conducting a governance vote, and making an official announcement. Early voting trends suggest a majority in favor of the test.
WLFI has reserved the right to modify, suspend, or cancel the airdrop at any time, even if the proposal is approved by governance. Additional conditions and execution details are expected following the community feedback phase and formal vote.
USD1 Launch Sparks Regulatory Backlash
In March 2025, WLFI launched USD1—a stablecoin pegged 1:1 to the U.S. dollar—designed primarily for institutional and sovereign investors. The token is fully backed by U.S. Treasuries, dollars, and other cash equivalents, with availability on both the Ethereum and BNB Chain networks.
Recent disclosures revealed that a substantial portion of the $550 million raised through WLFI’s token sales—approximately $390 million—was directed to DT Marks DEFI LLC, a company linked to the Trump family. The revelation has drawn scrutiny in Washington, raising concerns about transparency and the ethical implications of former or current political figures leading cryptocurrency initiatives.
WLFI’s governance structure has also been criticized. Its native token remains non-transferable, a feature the project claims is temporary and part of its early-stage design. However, critics argue this undermines decentralization and limits broader community oversight, prompting renewed calls for regulatory action.
In response to mounting concerns, lawmakers including Senator Elizabeth Warren and Representative Maxine Waters have urged the SEC to disclose internal communications related to WLFI. Their request cited worries over potential “regulatory favoritism,” particularly after the SEC paused enforcement actions in several high-profile cases—including one involving Justin Sun, a key WLFI investor and founder of the Tron blockchain.
The proposed USD1 airdrop, along with WLFI’s broader stablecoin rollout, arrives at a politically sensitive moment. While the project seeks to position itself as a stable and institutional-grade digital finance platform, its close ties to high-profile political figures and governance opacity have put it squarely under the microscope. As debates around the STABLE Act intensify and regulators assess their next steps, the success of WLFI’s airdrop—and the project’s long-term viability—may hinge as much on policy shifts as on market adoption.
Quick Facts
- WLFI plans to conduct a test airdrop of its USD1 stablecoin to WLFI holders, pending community feedback and governance approval.
- USD1 launched in March, backed by U.S. Treasuries and fiat reserves, and is available on Ethereum and BNB Chain.
- Lawmakers are scrutinizing WLFI’s political ties and governance model, with calls for new rules limiting stablecoin projects linked to public officials.
