World Liberty Financial (WLFI) opens governance vote to airdrop its new US dollar-pegged stablecoin, USD1

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Crypto platform World Liberty Financial (WLFI), which is backed by the Trump family, has opened a governance vote to airdrop its new US dollar-pegged stablecoin, USD1, to early WLFI token holders.

The proposal, posted on May 6 in the WLFI governance forum, has gained almost unanimous support with 99.97% of votes in favor. It is scheduled to close on May 14. Currently, those in favor are far ahead with approximately 2.6 billion tokens used to vote yes, compared to about 901,000 votes against the measure.

The vote will test the platform’s airdrop mechanism in a live environment while also rewarding the project’s earliest supporters. It will also calculate the exact amount of USD1 to be distributed based on the total number of eligible wallets and the allocated budget for the initiative.

Stablecoin Details and Background

USD1 was quietly deployed on the BNB Chain in early March. The presence of the stablecoin was first detected by blockchain analytics firm LookOnChain, which traced the contract to a wallet associated with crypto market maker Wintermute, indicating preliminary test transactions.

WLFI formally announced the launch of USD1 on March 25. The stablecoin is now available on both Ethereum and Binance Smart Chain, with plans to expand to other blockchain networks in the future.

Unlike algorithmic stablecoins, USD1 is presented as a fully backed, institution-ready digital asset. The coin is backed by reserves consisting of short-term U.S. Treasuries, cash, and equivalent high-quality assets, which will be held and managed by digital asset custodian BitGo.

“USD1 provides what algorithmic and anonymous crypto projects cannot—access to the power of DeFi underpinned by the credibility and safeguards of the most respected names in traditional finance,” said WLFI co-founder Zach Witkoff.

The move comes at a time when the market for US dollar-denominated stablecoins is seeing major growth. According to a report from investment banking giant Citigroup, the market cap of US dollar stablecoins crossed $230 billion in April, marking a 54% increase since last year.

Tether (USDT) and USD Coin (USDC) currently occupy the largest portions of this market, with a combined 90% share. However, competition is arising from various directions.

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

Similarly, a Russian finance ministry official unveiled a plan for the country to develop its own stablecoin. This followed a move by US authorities and stablecoin issuer Tether to freeze wallets linked to the sanctioned Russian exchange Garantex.

The date for the WLFI airdrop is still pending. The company reserves the “right to discontinue, suspend, modify or terminate the test airdrop” at any time, although the massive support from token holders suggests the airdrop will likely proceed once the voting period concludes on May 14.