The Trump household’s World Liberty Monetary (WLFI) has authorised a neighborhood proposal to airdrop its USD1 stablecoin to eligible token holders, in accordance with a Could 15 assertion.
The governance vote, which ran from Could 6 to Could 13, acquired near-unanimous help, with 99.96% of members backing the initiative. In complete, round 7 billion tokens had been dedicated to the proposal.
Following the approval, WLFI’s workforce introduced it’s making ready the rollout and can quickly share the ultimate airdrop particulars.
Whereas the vote clears a big hurdle, the undertaking reserves the suitable to proceed with or cancel the airdrop based mostly on operational readiness.
Whales dominate WLFI’s governance voting
Notably, governance knowledge reveals that voting energy for the proposal was extremely concentrated amongst whales.
In keeping with the knowledge, simply 5 addresses accounted for over 40% of the whole votes. One tackle alone managed 1 billion WLFI tokens, representing 14.75% of the voting weight. One other held 666.7 million tokens, contributing 9.8%, whereas two others had 500 million every, representing 7.37% apiece.
This excessive focus degree raises considerations concerning the decentralization and decision-making course of within the undertaking’s decentralized autonomous organizations (DAOs).
WLFI and USD1 scrutiny continues
The airdrop announcement comes at a delicate time for WLFI and USD1, which have been criticized for his or her political connections and investor profile.
US lawmakers have persistently questioned the undertaking’s ties to US President Donald Trump and flagged potential moral considerations associated to the undertaking.
A latest letter to Treasury Secretary Scott Bessent, signed by a number of Democratic lawmakers, flagged WLFI’s resolution to order 90% of its token sale for international traders.
The lawmakers identified that the enterprise had acquired a $75 million funding from controversial crypto entrepreneur Justin Solar, who had been beneath the SEC investigation till lately. They famous that:
“The SEC [has] requested the courtroom to pause its enforcement motion in opposition to Mr. Solar, elevating troubling questions on whether or not the Trump Administration’s obvious abandonment of its gravely severe fees in opposition to Mr. Solar constituted an unlawful quid professional quo in change for his largesse directed at this Trump household enterprise.”
Contemplating this, the letter warned that the transfer might expose the US monetary system to dangers, particularly given allegations that some traders may need ties to prison exercise or ongoing investigations.
Nonetheless, in response to the accusations, Zach Witkoff, one of many undertaking’s co-founders, argues that the world wants options like WLFI and USD1. He wrote:
“America — and the remainder of the world — wants options like USD1. We won’t be intimidated by politicians with an axe to grind.”
