World Liberty Financial opens vote for proposed USD1 airdrop to WLFI holders

World Liberty Financial, the crypto project backed by U.S. President Donald Trump, opened a new snapshot vote for its proposal to airdrop its USD1 stablecoin to WLFI token holders.

The snapshot vote relays World Liberty's proposal last month to distribute a "small amount" of USD1 to all current WLFI token holders to test its onchain airdrop function via the Ethereum mainnet. The amount of USD1 distributed per wallet and the timing of the airdrop are not finalized.

"Testing the airdrop mechanism in a live setting is a necessary step to ensure smart contract functionality and readiness," its latest post said. "This distribution also serves as a meaningful way to thank our earliest supporters and introduce them to USD1."

Following the first eight hours of the snapshot voting process, the proposal has received overwhelming support, with 2.6 billion votes (99.97%) in favor and approximately 901,400 votes against. The vote is scheduled to close on May 14.

"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," World Liberty noted in the proposal.

Since launching last September, World Liberty has completed two public sales of its WLFI tokens, from which it earned $550 million.

USD1 launch plan

World Liberty confirmed its USD1 stablecoin launch plan in March, promoting it as backed entirely by short-term U.S. government treasury, U.S. dollar deposits, and other cash equivalents.

Since then, the project has promoted the stablecoin through various channels and partnerships. Abu Dhabi investment firm MGX also announced during last week's Token2049 Dubai conference that it will use USD1 to close its $2 billion deal with Binance crypto exchange.  

However, the Trump-linked project's stablecoin launch has been scrutinized by U.S. Democratic Senators, who raised concerns about potential conflicts of interest for President Trump.

On Tuesday, House Democrats boycotted a planned hearing on regulating the crypto industry following tensions over Trump's potential conflicts of interest in crypto.

The same day, Richard Blumenthal, a Democratic Senator and the ranking member of the Senate Permanent Subcommittee on Investigations, sent a letter to World Liberty co-founder Zach Witkoff requesting information on what the project has done to address such potential conflicts of interest.

"WLFI’s financial entanglements with President, his family, and the Trump Administration present unprecedented conflicts of interest and national security risks, including potential violations of the foreign emoluments clause," Blumenthal said.

World Liberty Financial's official website lists President Donald Trump as the "chief crypto advocate" and his sons, Eric Trump, Donald Trump Jr., and Barron Trump, as members. 

The project's whitepaper, however, states that the Trump family members are not involved in running or owning the WLFI project.