The Trump household’s World Liberty Monetary (WLFI) has authorized a group proposal to airdrop its USD1 stablecoin to eligible token holders, in line with a Could 15 assertion.
The governance vote, which ran from Could 6 to Could 13, obtained near-unanimous assist, with 99.96% of contributors backing the initiative. In whole, round 7 billion tokens have been dedicated to the proposal.
Following the approval, WLFI’s workforce introduced it’s getting ready the rollout and can quickly share the ultimate airdrop particulars.
Whereas the vote clears a major hurdle, the undertaking reserves the appropriate to proceed with or cancel the airdrop primarily based on operational readiness.
Whales dominate WLFI’s governance voting
Notably, governance knowledge reveals that voting energy for the proposal was extremely concentrated amongst whales.
Based on 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 stage raises issues 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 issues associated to the undertaking.
A current 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 overseas buyers.
The lawmakers identified that the enterprise had obtained a $75 million funding from controversial crypto entrepreneur Justin Solar, who had been underneath the SEC investigation till lately. They famous that:
“The SEC [has] requested the courtroom to pause its enforcement motion towards Mr. Solar, elevating troubling questions on whether or not the Trump Administration’s obvious abandonment of its gravely critical expenses towards 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 may expose the US monetary system to dangers, particularly given allegations that some buyers might need ties to legal exercise or ongoing investigations.
Nevertheless, 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 is not going to be intimidated by politicians with an axe to grind.”
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