What Happened?
The DeFi protocol World Liberty Financial, supported by the Trump family, announced an airdrop of the “USD1” stablecoin to early supporters of the project. In addition to testing the airdrop system, it aims to reward holders of the “WLFI” token.
USD1 is pegged to the US dollar at a 1:1 ratio and will initially be issued on the Ethereum and Binance Smart Chain, with plans to expand to more blockchains in the future.
Due to the close association between World Liberty Financial and the Trump family, concerns have been raised by political parties and institutions such as the Democratic Party and the U.S. Securities and Exchange Commission.
DeFi Protocol Supported by Trump Family to Airdrop “USD1” Stablecoin
World Liberty Financial (WLFI) is a decentralized finance (DeFi) protocol supported by U.S. President Donald Trump and his family members. Recently, the project proposed an airdrop plan to distribute the upcoming “USD1” stablecoin to existing WLFI token holders.
According to a report by Reuters, the Trump family has become the controlling entity of World Liberty Financial through a company that holds 60% of the shares.
According to World Liberty Financial, this airdrop has three main objectives. Firstly, to verify the functioning of the airdrop system; secondly, to conduct public testing of the USD1 stablecoin before its official launch; and finally, to reward early supporters. Currently, all WLFI token holders are eligible to participate in the airdrop, but the amount of tokens each wallet receives will be determined based on the number of participants and the total supply of USD1 tokens.
Although the proposal has garnered strong support within the WLFI community, the project team has clearly stated that they reserve the right to cancel or suspend the airdrop at any time.
What is the “USD1” Stablecoin?
USD1 is a fully collateralized stablecoin designed to maintain a 1:1 peg with the U.S. dollar. Its reserves include short-term U.S. treasury bills, fiat currency reserves, and other liquid cash. USD1 will initially be issued on the Ethereum (Ethereum) and Binance Smart Chain (Binance Smart Chain), with plans to expand to more blockchains in the future.
While the proposal has received community support, foreign media have pointed out that World Liberty Financial and the USD1 stablecoin will still be subject to political scrutiny. For example, U.S. Senator Elizabeth Warren and other Democratic lawmakers have expressed concerns about the Trump family’s involvement, suggesting it could raise conflicts of interest.
In addition, reports indicate that the U.S. Securities and Exchange Commission (SEC) and the Federal Reserve have been asked to investigate whether the Trump family’s participation would affect the regulation and management of the project.
Beyond political and regulatory challenges, another obstacle for USD1 is the fierce market competition. Facing strong competitors like Tether (USDT) and Circle (USDC), USD1 must carve out its niche in the DeFi space. World Liberty Financial emphasizes that the USD1 stablecoin will combine decentralized financial innovation with traditional financial safeguards, and will undergo regular audits by institutions such as the digital asset trust company Bitgo to ensure user confidence.
Source: CryptoSlate, Bitcoin.com