More than 40% of WLFI’s USD1 airdrop approval vote focused on just five wallet addresses.
The World Liberty Financial (WLFI), linked to the Trump family, has endorsed a community initiative to distribute its USD1 stablecoin to eligible token holders, as announced on May 15.
The governance voting took place from May 6 to May 13 and received overwhelming support, with 99.96% of participants in favor. Approximately 7 billion tokens were involved in the proposal.
With the proposal’s acceptance, WLFI’s team indicated that preparations for the rollout are underway and that final details regarding the airdrop will be revealed soon.
Although the vote marks a significant step forward, the project retains the discretion to either proceed with or cancel the airdrop depending on its operational status.
Voter Influence in WLFI Governance
Data surrounding the governance vote shows a significant concentration of voting power among a few major players.
Specifically, five addresses together held more than 40% of the votes. One address controlled 1 billion WLFI tokens, equating to 14.75% of the total voting power. Another address owned 666.7 million tokens, amounting to 9.8%, while two additional addresses each held 500 million tokens, each representing 7.37%.
This centralization raises questions regarding the degree of decentralization and the decision-making framework within the project’s decentralized autonomous organization (DAO).
Ongoing Examination of WLFI and USD1
The announcement about the airdrop arrives during a period of heightened scrutiny for WLFI and USD1, which have faced criticism for their associations and investor demographics.
US lawmakers have persistently raised concerns about the project’s links to Donald Trump, highlighting potential ethical implications.
A recent letter from several Democratic lawmakers to Treasury Secretary Scott Bessent expressed worry regarding WLFI’s choice to allocate 90% of its token sale to foreign investors.
Additionally, the lawmakers pointed out a $75 million investment from crypto entrepreneur Justin Sun, who recently faced scrutiny from the SEC. They expressed concern that:
“The SEC requested the court to pause its actions against Mr. Sun, which raises troubling questions about whether the Trump Administration’s apparent leniency towards Mr. Sun could imply an illegal quid pro quo related to his investment in this venture linked to the Trump family.”
The letter cautioned that such actions could present risks to the US financial system, especially as some investors might have connections to criminal activities or ongoing probes.
In defense against these allegations, Zach Witkoff, a co-founder of the project, asserted that initiatives like WLFI and USD1 are crucial and will not be dissuaded by politically motivated adversaries. He stated:
“The United States and the world require solutions such as USD1. We will not allow ourselves to be intimidated by politicians with ulterior motives.”
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