World Liberty Financial Mints $25 Million in USD1 and Burns $3 Million

World Liberty Financial, a crypto project backed by the Trump family, issues the WLFI governance token. The transaction was conducted through Dolomite, a lending protocol co-founded by one of the project’s advisers. The affiliation and the use of its own token as collateral for financing have raised concerns about conflicts of interest and circular risk.

As of July 19, 2026, World Liberty Financial had deposited 5 billion WLFI as collateral on Dolomite and borrowed $75 million in stablecoins, nearly draining the protocol’s liquidity pool. Despite the team’s defense of the position, WLFI plunged 12% in a single day to a record low. The market has also raised “LUNA 2.0” concerns and warned of a further 20% decline.

World Liberty Financial is a Trump family-backed DeFi project that uses WLFI as its governance token and USD1 as its dollar stablecoin. As of February 26, 2026, USD1 had a market capitalization of about $4.7 billion, ranking fifth. The proposal links voting power and staking rewards to stablecoin usage, with implications for the concentration of governance and USD1’s expansion.

WLFI introduced the proposal on February 25, 2026, requiring unlocked tokens to be staked for at least 180 days. Participants who vote at least twice during that period could earn a target annualized reward of 2%, while USD1 deposited in WLFI Markets would qualify for Dolomite incentives. The proposal passed on March 13 with 99.12% support and about 1,800 participants, although 10 wallets controlled 76% of the voting power. The highest tier required staking 50 million WLFI tokens, worth about $5 million at the time.

Binance has restarted an airdrop for USD1 holders, distributing World Liberty Financial (WLFI) tokens to encourage users to hold and use USD1 on its platform. Such campaigns link stablecoin holdings to token rewards, requiring participants to pay attention to eligible account types, calculation methods and leverage risks.

The four-week campaign begins on March 20, with Binance planning to distribute a total of 135 million WLFI tokens. Users can participate by holding USD1 in spot, funding, margin or futures accounts. Eligible holdings used as leveraged collateral can receive a 1.2× reward multiplier.

World Liberty Financial, or WLFI, is a DeFi project backed by the Trump family whose USD1 stablecoin aims to maintain a peg of $1 per token. The close association between a political family’s brand and crypto finance has drawn scrutiny of account security, reserve transparency and market confidence.

The project recently faced a coordinated attack in which hackers compromised a founder’s account to spread panic while taking short positions, briefly pushing USD1 down to $0.9942. The project said funds were safe and its stabilization mechanism was functioning normally. As of July 20, 2026, USD1 had regained its peg, though the WLFI governance token remained under downward pressure.