Trump's team unveils World Liberty Financial token details
In the wake of eluding a second attempt on his life merely a day prior, Donald Trump made headlines with the official unveiling of his much-anticipated cryptocurrency initiative, World Liberty Financial.
This venture is set to introduce services for cryptocurrency borrowing and lending, utilizing the Ethereum blockchain. Similar to the multitude of DeFi applications already in the market, World Liberty Financial seeks to eliminate the traditional financial intermediaries like banks, offering direct financial services. Trump's foray into the cryptocurrency space is marked by a commitment to enhance user experience, making the platform more approachable than its more complex counterparts.
At its core, it will feature a non-transferable governance token, known as the World Liberty Financial token (WLFI), distinct in that it won't be up for trading. At the helm of operational and strategic directions are Zak Folkman and Chase Herro, who disclosed fresh details about the WLFI token's distribution strategy.
They emphasized that the token's sale process would adhere to regulations set by the U.S. Securities and Exchange Commission (SEC), ensuring a compliant and structured rollout.
A significant 62.66% of the WLFI token supply is poised for public sale, with part of these proceeds directed towards the project's treasury reserve managed by a multi-signature wallet. Another portion will compensate the founding team, employees, and service contributors, as highlighted in an excerpt from World Liberty’s white paper. Around 17.33% of the total WLFI tokens are reserved to foster governance participation and support community initiatives, per the white paper excerpt. The balance, 20%, is allocated to the project's core team, advisors, and future staff, with specific segments of WLFI set aside for the WLF Foundation, entities associated with the Trump Organization, and the Witkoff Group - overseen by Trump's confidant Steve Witkoff, who plays a role in World Liberty.
Contrary to prior reports hinting at an insider allocation of 70% of WLFI tokens, sources now describe those accounts as “inaccurate,” without elaborating.
Moreover, it was confirmed on Monday that WLFI's sale falls under SEC regulation, addressing some of the regulatory ambiguities associated with launching a DeFi project during such a tumultuously regulated epoch for the industry. WLFI buyers will undergo "know your customer" (KYC) procedures, akin to standards practiced by U.S. cryptocurrency exchanges such as Coinbase and Kraken.
Despite a section in World Liberty’s white paper suggesting WLFI tokens are not outright securities, they will be marketed under SEC’s Regulation D Rule 506(c) as unregistered securities exempted for sale in the U.S. to a specific investor class, termed accredited investors by the SEC. This investor class encompasses individuals demonstrating significant financial savviness or meeting certain income or net worth criteria—ensuring that only those with a substantial financial background participate. Nonetheless, details regarding the project's nuances remain fluid, as per a knowledgeable source.
