On Monday, World Liberty Financial (WLFI), a decentralized finance project backed by President Donald Trump, announced a proposal to distribute a small amount of its newly launched USD1 stablecoin to all eligible WLFI token holders. 

The test, the company wrote, would “validate the technical functionality of its airdrop system in a live environment while thanking early supporters of the project.”

Framed as a test of its on-chain airdrop system, the proposal seeks to reward early adopters and boost “visibility and awareness” of its stablecoin USD1 before full-scale deployment.

“Testing the airdrop mechanism in a live setting is a necessary step to ensure smart contract functionality and readiness,” the proposal said.

The exact airdrop amount and timing are still being finalized, though it will occur on Ethereum Mainnet and be funded by WLFI.

“Even if approved, World Liberty Financial, Inc. reserves the right to discontinue, suspend, modify, or terminate the test airdrop at any time as well as to establish any additional eligibility requirements,” the Trump-linked firm wrote.

WLFI’s proposal also lays out a detailed plan including community discussion, finalization of the airdrop amount and execution method, a governance vote, and finally, public announcement of the distribution. 

The voters are offered three options: Yes, No, or Abstain, with the majority having selected ‘Yes’ since the proposal was posted 7 hours ago.

WLFI’s Political Ties Trigger Backlash 

Since WLFI launched USD1 in late March, just as Congress began debating the bipartisan STABLE Act, lawmakers have sounded alarms over Trump’s financial stake in the project, warning it could compromise the integrity of the regulation.

WLFI, launched last September, has already raised $550 million through token sales, with $390 million reportedly paid out to Trump family-linked entity DT Marks DEFI LLC. 

The firm’s stablecoin USD1 is collateralized by U.S. Treasuries and managed by custodian BitGo, but the platform’s governance token remains non-transferable, adding to concerns over transparency and decentralization.

Tensions exploded during a recent House Financial Services Committee markup of the bill as  Democrats pushed for amendments that would bar sitting presidents, cabinet members, and their families from launching stablecoins while in office.

Meanwhile last week, Sen. Elizabeth Warren (D-MA) and Rep. Maxine Waters (D-CA) demanded the U.S. Securities and Exchange commission (SEC) to turn over all internal records related to WLFI, citing potential “regulatory favoritism” and the agency’s decision to pause enforcement actions, including one involving WLFI investor and Tron founder Justin Sun.