The Trump household’s World Liberty Monetary (WLFI) has permitted a group proposal to airdrop its USD1 stablecoin to eligible token holders, in keeping with a Might 15 assertion.
The governance vote, which ran from Might 6 to Might 13, acquired near-unanimous assist, with 99.96% of individuals backing the initiative. In complete, round 7 billion tokens have been dedicated to the proposal.
Following the approval, WLFI’s group introduced it’s getting ready the rollout and can quickly share the ultimate airdrop particulars.
Whereas the vote clears a big hurdle, the undertaking reserves the fitting to proceed with or cancel the airdrop based mostly on operational readiness.
Whales dominate WLFI’s governance voting
Notably, governance information reveals that voting energy for the proposal was extremely concentrated amongst whales.
In accordance with the information, simply 5 addresses accounted for over 40% of the entire 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 issues in regards to 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 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 overseas buyers.
The lawmakers identified that the enterprise had acquired a $75 million funding from controversial crypto entrepreneur Justin Solar, who had been below the SEC investigation till lately. They famous that:
“The SEC [has] requested the court docket 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 costs in opposition to Mr. Solar constituted an unlawful quid professional quo in trade 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 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 is not going to be intimidated by politicians with an axe to grind.”
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