Cryptocurrency has always been a landscape of innovation and is now intertwined with politics. World Liberty Financial (WLFI), a decentralised finance project, has gained significant attention due to the endorsement of former U.S. President and 2024 presidential candidate Donald Trump. Backed by Trump and his family members, including Donald Trump Jr., Eric Trump, and Barron Trump, the project aims to strengthen the global standing of U.S.-pegged stablecoins in the DeFi space.
What is World Liberty Financial?
World Liberty Financial is designed to promote the mass adoption of stablecoins and decentralised finance, positioning U.S.-pegged stablecoins as the primary global settlement layer. The project has set its sights on the future dominance of these stablecoins in global finance, mirroring the traditional role of the U.S. dollar. Though still in development, it is expected to launch as an Aave V3 instance, creating a marketplace for borrowing and lending cryptocurrencies using Aave’s infrastructure.
WLFI Token: Governance with a Twist
One of the key features of World Liberty Financial is its governance token, WLFI. Unlike most governance tokens in the DeFi space, WLFI does not carry economic rights, making it non-transferable after purchase. This means that once you buy WLFI, you won’t be able to trade or sell it. The token only provides governance voting rights, allowing holders to participate in decision-making within the platform.
The WLFI token is built on Ethereum (ERC-20) with a total supply of 100 billion tokens, distributed as follows:
- 35% for public sale
- 32.5% for community growth and incentives
- 30% for initial supporters
- 2.5% for advisors and team members
Public Sale and KYC Requirements
The public sale of WLFI tokens started on October 15, 2024, offering 20 billion tokens, which can be purchased using USDC, or ETH. So far, the project has raised approximately $14 million. However, the process comes with strict requirements, including KYC (Know Your Customer) verification, which involves national ID and facial recognition. Interestingly, while the project aims to bolster the U.S. dollar, American citizens are currently barred from participating in the sale.
Trump’s Role and Non-Political Branding
Despite Donald Trump’s and his family’s involvement, the project maintains that it is not politically affiliated. The Trump family serves as advisors to the project rather than board members, and they have been allocated around 22.5 billion WLFI tokens in exchange for their contributions. World Liberty Financial has been clear that its goal is financial, not political, even though it coincides with Trump’s 2024 presidential campaign.
A Bold Step in DeFi with Uncertain Future
World Liberty Financial is making waves due to its unusual approach. Most DeFi projects assure token holders of future economic rights, even if they are deferred. In contrast, WLFI tokens are designed with no financial benefits and remain illiquid, a characteristic that has raised eyebrows in the crypto community. Nonetheless, the project’s bold branding and endorsement by a former U.S. president have drawn attention, and it could become a pivotal point for DeFi as we know it.
As World Liberty Financial continues to develop, its long-term impact on the DeFi landscape remains to be seen. Whether it will successfully reshape the stablecoin market or fall short due to its unique tokenomics is yet to be determined. However, its connection to Donald Trump makes it one of the most talked-about crypto projects in 2024. For those interested in following the latest trends in cryptocurrency, Coinsdrom will keep you updated on this evolving project and its potential implications for both the crypto and financial sectors.
