World Liberty Financial (WLFI) received nearly unanimous approval from its community to initiate an on-chain airdrop of its USD1 stablecoin for relevant WLFI token holders.
Despite the lack of an official announcement, this is a significant step towards real implementation and broader visibility of the token.
Will World Liberty Financial issue the USD1 stablecoin airdrop?
On May 7, the Trump family DeFi project launched a Snapshot governance proposal for the distribution of USD1 among all WLFI holders. World Liberty Financial described this as a test of the on-chain airdrop mechanism of the network.
“A new Snapshot vote is active for the USD1 airdrop to all relevant WLFI holders. Free USD1. The hottest stablecoin in the crypto industry. Don't miss your chance – vote now,” said World Liberty Financial in a post.
The proposal was passed with overwhelming support, receiving 99.96% of the voting power, or 6.8 billion votes, in favor. The turnout is not surprising given the value that crypto airdrops bring. They provide farmers with early access to promising projects with minimal or no initial investments. This explains the numerous community supports for the proposal, as seen in the governance discussions. The initiative is now ready for execution, awaiting final confirmation of distribution terms and timelines from World Liberty Financial. The team did not immediately respond to BeInCrypto's request for comments.
According to the proposal, however, the upcoming airdrop will take place on the Ethereum mainnet, targeting all relevant wallets holding WLFI.
While the specific amount of USD1 per wallet and the airdrop timeline remain undisclosed, the company stated that World Liberty Financial, Inc. will fully fund the distribution.
“A fixed amount of USD1 will be distributed to the wallet, which will be funded by World Liberty Financial, Inc.,” states an excerpt from the description.
This step has been strategically planned to achieve three objectives. Firstly, it aims to test the airdrop infrastructure in a live network environment. Secondly, it seeks to create early visibility for the USD1 stablecoin and reward early adopters of WLFI.
“Testing the airdrop mechanism in live conditions is a necessary step to ensure the functionality of the smart contract and readiness,” the recommendation states.
Rapid growth of the USD1 stablecoin amid regulatory pressure
Launched just two months ago, the USD1 stablecoin has quickly gained traction. By early May, it surpassed a capitalization of $2 billion and was valued at $2.129 billion at the time of writing. World Liberty Financial developed it as a politically neutral asset, representing it as a fiat asset that can circulate globally. However, despite the rapid growth of the stablecoin, the path to mass adoption is complicated by controversies.
Concerns have arisen regarding potential ties to U.S. President Donald Trump, with reports indicating involvement from his inner circle. The U.S. Treasury and financial regulators are reviewing the operations and governance of World Liberty Financial for potential compliance and disclosure issues.
Close attention to the project's connections has drawn comparisons to other digital assets with political entanglements. The Markets in Crypto-Assets Regulation (MiCA) presents yet another hurdle in Europe.
Experts argue that the governance model and disclosure policy of USD1 may face challenges amid stricter EU regulatory frameworks. Such hurdles could delay or even block access to key European markets.
Despite regulatory uncertainty, the rapid rollout of the USD1 stablecoin reflects the growing demand for dollar-pegged alternatives in both decentralized finance (DeFi) and traditional finance (TradFi) sectors.
If the WLFI airdrop occurs as planned, it could further expand the circulation of USD1 and strengthen its position ahead of a broader market launch.