World Liberty Financial (WLFI), the Defi company that is partly owned by US President Donald Trump, has launched a proposal to distribute his upcoming Stablecoin, USD1, into existing WLFI token farmers.
The initiative is intended to test the AirDrop infrastructure in a live environment and to show appreciation to the early backers of the project.
According to WLFI, the AirDrop wants to achieve three main objectives. Firstly, it validates the technical readiness of the AirDrop system in a live environment. Secondly, it will introduce the USD1 Stablecoin in the community before its public rollout. Finally, the early adopters will reward for their support.
All current WLFI holders are eligible to receive a fixed amount of USD1. However, the final amount per wallet is determined on the basis of the number of qualified participants and available resources.
Although the proposal has received strong support within the WLFI community, the company has clarified that it is the right to cancel or suspend the airdrop at any time, even after approval.
USD1 exclaims concern
USD1 is designed as a fully collateral tablecoin, which maintains a 1: 1 PEG with the US dollar. US treasuries in the short term, Fiat currency reserves and other liquid cash equivalents will support it.
The first launch will take place on Ethereum and Binance Smart Chain, with expansion to extra blockchain networks planned for the future.
Despite the growing support of the community for the proposal, WLFI and USD1 came under political research. Democratic legislators, led by Senator Elizabeth Warren, have expressed concern about possible conflicts of interest associated with the involvement of the Trump family.
Agencies such as the Securities and Exchange Commission (SEC) and the Federal Reserve are reportedly asked to assess whether that connection can influence the supervision of the regulations.
WLFI reportedly did not respond directly to these questions.
