World Liberty Financial Proposes USD1 Stablecoin Airdrop to Token Holders

World Liberty Financial (WLFI), a decentralized finance project backed by President Donald Trump, has proposed a test distribution of its USD1 stablecoin to current WLFI token holders. The initiative aims to validate the technical functionality of its airdrop system in a live environment while rewarding early supporters of the project. The test is also intended to boost visibility and awareness of the USD1 stablecoin before its full-scale deployment.

The airdrop will be funded directly by WLFI and will occur on the Ethereum Mainnet. All wallets currently holding WLFI tokens will be eligible to receive a fixed amount of USD1, subject to requirements that will be determined by the firm. The proposal outlines several next steps, including community discussion, finalizing distribution details, conducting a governance vote, and making a public announcement. WLFI has reserved the right to discontinue, suspend, modify, or terminate the test airdrop at any time, even if the proposal receives approval. Voters are currently offered three options: Yes, No, or Abstain, with the majority having selected ‘Yes’ since the proposal was posted.

The airdrop proposal comes at a time when WLFI’s political connections have drawn scrutiny. The project launched its USD1 stablecoin in late March 2025, coinciding with Congressional debates over the bipartisan STABLE Act, which aims to regulate stablecoins. WLFI, which launched in September, has already raised $550 million through token sales. Reports indicate that $390 million of these funds were paid out to DT Marks DEFI LLC, an entity linked to the Trump family. The USD1 stablecoin is reportedly collateralized by U.S. Treasuries and managed by custodian BitGo. However, the platform’s governance token remains non-transferable, which has raised questions about the project’s transparency and decentralization.

Democrats in Congress have voiced concerns over Trump’s financial stake in the project. During a recent House Financial Services Committee markup of the STABLE Act, tensions rose as Democrats pushed for amendments that would bar sitting presidents, cabinet members, and their families from launching stablecoins while in office. Last week, Sen. Elizabeth Warren and Rep. Maxine Waters requested that the U.S. Securities and Exchange Commission turn over all internal records related to WLFI. They cited concerns about potential “regulatory favoritism” and the agency’s decision to pause certain enforcement actions, including one involving WLFI investor and Tron founder Justin Sun.

The test airdrop will be executed on Ethereum, though WLFI’s USD1 stablecoin is currently available on both Ethereum and Binance’s BNB Chain. The team has already tested USD1 stablecoin transfers between these two blockchains, with market maker Wintermute participating in the tests. The airdrop test comes as the global crypto market shows signs of recovery. The timing of this test may be strategic, as it coincides with broader economic tensions. Some observers have noted that Trump’s aggressive tariff approach has created economic uncertainty, with some countries reportedly boycotting American products in response. In this climate, the Trump-backed WLFI project appears to be building momentum in the crypto space, using the airdrop test as a way to expand its user base and increase adoption of its stablecoin.