World Liberty Financial (WLFI), supported by the Trump family, has announced a new governance proposal to test the Airdrop system by distributing USD1 stablecoin to WLFI token holders.
This move came shortly after the DeFi project launched its stablecoin at the end of March.
World Liberty Financial Focuses on First Stablecoin Airdrop
WLFI's initiative has three main objectives. First, it aims to verify the project's technical infrastructure. Second, it serves as a reward mechanism for early supporters, and lastly, to expand the visibility of USD1.
"Testing the Airdrop mechanism in a live environment is an essential step to ensure smart contract functionality and readiness. This distribution is also a meaningful way to introduce USD1 as a token of appreciation to early supporters." – As stated in the proposal.
The Airdrop will distribute a fixed amount of USD1—a stablecoin pegged to the US dollar, backed by assets like US Treasury bonds—to all eligible WLFI holders on the Ethereum (ETH) mainnet.
The exact amount per wallet will be determined by the total number of eligible wallets and WLFI's budget. Additionally, the company reserves the right to modify or terminate the test.
Interestingly, the comments on the proposal reflect strong community support. The general consensus seems to be in favor of the USD1 stablecoin Airdrop.
"I believe this proposal is valid for engaging the community and testing network implementation. Therefore, I think it's a positive action for both holders and institutions. Let's move forward and build," wrote one user.
The next step is to finalize the details of the Airdrop. The proposal will then proceed to a governance vote. Voting options include "Yes" to approve the Airdrop, "No" to reject it, and "Abstain" for those who do not wish to vote. This process ensures transparency and community participation in the decision-making process.
Meanwhile, the proposal emerged amid enhanced scrutiny of the Trump family's involvement in cryptocurrency business.
On April 2, Senators Elizabeth Warren and Maxine Waters sent a letter to SEC Acting Chair Mark Uyeda. The lawmakers requested that the SEC preserve all records and communications related to World Liberty Financial.
They also requested information to clarify how the Trump family's financial stake in WLFI could impact SEC operations. They also expressed concerns that this potential conflict of interest could hinder the SEC's investor protection mission and ensuring a fair and orderly market.
"The Trump family's financial stake in World Liberty Financial represents an unprecedented conflict of interest that could influence the Trump administration's oversight—or lack thereof—of the cryptocurrency industry, and creates a clear incentive for the Trump administration to direct federal agencies, including the SEC, to take a favorable position on cryptocurrency benefits directly benefiting the President's family," as stated in the letter.
Previously, Senator Warren and five other Democrats sent a letter to the Federal Reserve and OCC raising similar concerns.
