World Liberty Financial floats USD1 airdrop to WLFI holders

Trump family-backed crypto platform World Liberty Financial (WLFI) is proposing to airdrop a small amount of its new US dollar-pegged stablecoin to reward early WLFI holders in a test of its airdrop mechanism.

With over 99% of votes in favor of the proposal already, the airdrop will distribute a small amount of USD1 to eligible holders of the WLFI token, according to the May 6 proposal in the WLFI governance forum.

“Testing the airdrop mechanism in a live setting is a necessary step to ensure smart contract functionality and readiness. This distribution also serves as a meaningful way to thank our earliest supporters and introduce them to USD1,” the proposal states. 

“This will allow World Liberty Financial to validate the technical functionality of its airdrop system in a live environment while thanking early supporters of the project.”

The amount of USD1 is still to be determined but will be based on the total eligible wallets and budget, according to the proposal.

The date for the airdrop is also pending, and WLFI says it reserves the “right to discontinue, suspend, modify or terminate the test airdrop” at any time.

The vote is scheduled to close on May 14, and so far, those in favor are ahead with 2.6 billion, or 99.97% of tokens, used to vote yes. Those against the measure make up about 901,000 votes, or 0.03% of the vote so far.

WLFI launched its stablecoin in early March. Since the platform’s launch in September, the crypto firm has also completed two public token sales, netting the firm a combined $550 million from the 85,000 registered holders.

Other countries challenging US dollar stablecoins

The market cap of US dollar-denominated stablecoins crossed $230 billion in April, a report from investment banking giant Citigroup found, an increase of 54% since last year, with Tether (USDT) and USDC (USDC) dominating 90% of the market.

Related: $1T stablecoin supply could drive next crypto rally — CoinFund’s Pakman

However, other countries have announced plans to launch stablecoins backed by currencies other than the US dollar.

On April 28, a trio of major Abu Dhabi institutions, including the Emirate’s sovereign wealth fund, announced a joint initiative to launch a new dirham-pegged stablecoin.

A Russian finance ministry official also floated a plan on April 16 for the country to develop its own stablecoin after a freeze on wallets linked to the sanctioned Russian exchange Garantex by US authorities and stablecoin issuer Tether. 

Magazine: Ridiculous ‘Chinese Mint’ crypto scam, Japan dives into stablecoins: Asia Express