Insiders at World Liberty Financial, a project associated with the Trump family, are set to receive 70% of WLFI tokens, according to a draft white paper. This is a significant allocation for a project that aims to address the issues of “dishonest” TradFi, reports CoinDesk.
The document indicates that the founders, team, and service providers will also share in the profits from the public sale of the remaining 30% of governance tokens. A portion will be retained in the treasury “to support operations.”
Journalists have questioned whether such high parameters are an attempt to capitalize on the Trump family’s notoriety rather than the announced creation of a DeFi platform. The latter aims to solve the problem of access to financial services, taking on “a large part of the banking world.”
According to a source close to the project, World Liberty Financial has not yet finalized its tokenomics. The final version of the document will be distributed through official accounts on X and Telegram, the source added.
World Liberty Financial will focus on lending and will be built on the Ethereum blockchain and the Aave platform.
Previously, the publication noted a “striking” similarity with Dough Finance. The DeFi application lost $3.1 million in July due to a flash loan attack.
The nominal head of World Liberty Financial is Donald Trump, referred to as the “chief crypto advocate.” Other participants include all three sons of the former president—Donald Trump Jr., Eric, and Barron—as “Web3 ambassadors.”
The leadership also includes long-time friend of the politician, developer Steve Witkoff (overseeing institutional investments), his son Zach Witkoff (intelligence), and Alex Golubitsky as legal counsel.
The publication suggests that Donald Trump is counting on World Liberty Financial to bolster his position in the blockchain industry.
Some supporters of the former president have warned that the plan could backfire, journalists noted.
is there something that we, as crypto twitter, can collectively do to stop the launch of world liberty coin? i think it genuinely damages trump’s electoral prospects, especially if it gets hacked (it’ll be the juiciest DeFi target ever and it’s forked from a protocol that itself…
— nic carter (@nic__carter) September 4, 2024
“Is there something we can collectively do to stop the launch of World Liberty Coin? I think it genuinely damages Trump’s electoral prospects, especially if it gets hacked. At best, it’s an unnecessary distraction; at worst, a huge embarrassment and a source of (additional) legal issues,” noted Coin Metrics co-founder Nic Carter.
Earlier, the accounts of the former head of state’s daughter-in-law and daughter on X were hacked to promote an asset allegedly linked to the protocol. This occurred hours after information about World Liberty Financial was disclosed.
Back in August, Donald Trump also promised to make the US the “crypto capital of the world” if he wins the presidential election, tagging the project in the message.