World Liberty Financial Approves USD1 Stablecoin Airdrop With 99.96% Support

World Liberty Financial (WLFI) has approved a community proposal to airdrop its USD1 stablecoin to eligible token holders, as announced in a May 15 statement. The governance vote, which took place from May 6 to May 13, saw overwhelming support with 99.96% of participants backing the initiative. Approximately 7 billion tokens were committed to the proposal, marking a significant milestone for the project.

Following the approval, WLFI’s team has begun preparations for the rollout and will soon share the final airdrop details. However, the project reserves the right to proceed with or cancel the airdrop based on operational readiness. This decision underscores the project's commitment to ensuring a smooth and efficient distribution process.

Notably, governance data reveals that voting power for the proposal was highly concentrated among a few large token holders, or "whales." Just five addresses accounted for over 40% of the total votes. One address alone controlled 1 billion WLFI tokens, representing 14.75% of the voting weight. Another held 666.7 million tokens, contributing 9.8%, while two others had 500 million each, representing 7.37% apiece. This high concentration level raises concerns about the decentralization and decision-making process in the project’s decentralized autonomous organizations (DAOs).

The airdrop announcement comes at a sensitive time for WLFI and USD1, which have faced criticism for their political connections and investor profile. Lawmakers have consistently questioned the project’s ties to former US President Donald Trump and flagged potential ethical concerns related to the project. A recent letter to Treasury Secretary Scott Bessent, signed by several Democratic lawmakers, highlighted WLFI’s decision to reserve 90% of its token sale for foreign investors. The lawmakers noted that the venture had received a $75 million investment from controversial crypto entrepreneur Justin Sun, who had been under SEC investigation until recently. They expressed concerns that the move could expose the US financial system to risks, especially given allegations that some investors might have ties to criminal activity or ongoing investigations.

In response to the accusations, Zach Witkoff, one of the project’s co-founders, argued that the world needs solutions like WLFI and USD1. He stated, “America — and the rest of the world — needs solutions like USD1. We will not be intimidated by politicians with an axe to grind.” This statement reflects the project's resolve to continue despite the challenges and controversies it faces.