World Liberty Financial (WLFI), a cryptocurrency platform backed by the Trump family, has announced plans to airdrop a small amount of its new US dollar-pegged stablecoin, USD1, as part of a mechanism test. According to a May 6 proposal in the WLFI governance forum, over 99% of votes are currently in favor of the initiative, which aims to reward early WLFI token holders.
Testing Smart Contract Functionality and Rewarding Early Supporters
The airdrop is intended to validate the smart contract functionality in a live environment while simultaneously expressing gratitude to WLFI’s early adopters. “Testing the airdrop mechanism in a live setting is a necessary step to ensure smart contract functionality and readiness,” the proposal states. The specific amount of USD1 to be distributed has yet to be determined and will be based on the total number of eligible wallets and the project’s budget.
The vote on the airdrop proposal will close on May 14, with 2.6 billion tokens, or 99.97% of the vote, already cast in favor of the initiative. Only 901,000 tokens, representing 0.03% of the vote, have been cast against the measure.
Expanding the Stablecoin Market Amid Global Competition
WLFI launched its USD1 stablecoin in March 2024, following two successful public token sales that raised $550 million from 85,000 registered holders. The initiative comes as other countries are also exploring alternatives to US dollar-backed stablecoins. On April 28, Abu Dhabi announced plans to launch a dirham-pegged stablecoin, while Russia’s finance ministry is considering a national stablecoin after sanctions impacted the country’s crypto exchanges.
As the global stablecoin market surpasses $230 billion, with Tether (USDT) and USD Coin (USDC) dominating 90% of the sector, WLFI’s test airdrop could serve as a strategic move to gain early traction in a rapidly expanding market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Trump’s World Liberty Financial Buys 541,242 SEI Tokens, Pushing Price Up 7.5%
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
