World Liberty Financial (WLFI) is a decentralized finance (DeFi) protocol backed by Donald Trump and his sons Donald Trump Jr. and Eric Trump. What are the particularities of this crypto project and what are the roles of its WLFI token?
A crypto project supported by Donald Trump
World Liberty Financial is a decentralized finance (DeFi) protocol supported by former United States President Donald Trump. This protocol aims to “making blockchain-based financial services more accessible to the general public”.
This protocol promises to offer various features typical of DeFi, such as borrowing and lending cryptocurrencies, creating liquidity pools, as well as interacting with stablecoins. One of the main goals of World Liberty Financial is to make these services easier for users to use, especially those unfamiliar with decentralized finance.
To achieve this goal, WLF strongly believes in supporting US dollar-based stablecoins and DeFi applications that seek to preserve the status of the US dollar, ensuring it remains the global reserve currency for the coming century – without compromising the freedoms that decentralized assets provide.
As of October 18, 2024, there is no technical whitepaper available to describe in detail the future operation of the World Liberty Financial Protocol, and the platform itself is not yet accessible. However the project should develop its own interface based on the Aave protocol.
WLF has chosen the Aave V3 protocol to deploy their own instance. It's great to see the Aave infrastructure being utilized for new DeFi products that attract a broader userbase for DeFi. https://t.co/rNalgOJcbq
— Stani (@StaniKulechov) October 9, 2024
In October 2024, the only concrete action proposed is the purchase of the WLFI token, but this cannot be exchanged or transferred at the moment. Due to the lack of technical information on the World Liberty Financial protocol, it is recommended to exercise caution if considering acquiring WLFI, especially as the involvement of the Trump family has raised questions within the crypto community regarding possible conflicts of interest.
Furthermore, the sale of WLFI tokens from World Liberty Financial is struggling to attract a large number of investors. Although the World Liberty Financial site experienced outages due to high traffic during the sale's opening, this did not translate into lasting success in terms of participation.
SOf the 20 billion tokens put on sale since October 15, only 871 million units have found buyers. at the time of writing (October 18). Knowing that a WLFI token is sold for $0.015, World Liberty Financial raised just over $13 million, far from the expected $300 million.
The sale of WLFI tokens struggles to attract investors
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What is WLFI crypto used for?
World Liberty Financial's WLFI token is essentially a governance token which allows its holders to play an active role in the evolution of the protocol.
By holding WLFI tokens, it is possible to submit proposals related to various aspects of World Liberty Financial, such as protocol updates, how to allocate treasury funds, or potential partnerships. These proposals are then subject to community review, where all WLFI token holders can debate the proposals.
Once the review phase is complete, WLFI token holders move on to voting, where each WLFI token held represents one vote.
At the time of writing this article (October 18, 2024), although it is possible to acquire WLFI tokens via the World Liberty Financial website, they cannot be transferred. Accordingly, WLFI is not listed on any cryptocurrency exchange.
In the future, if governance decides to make this token transferable, a period of 12 months will be required before this functionality is implemented.
WLFI logo, styled by Cryptoast
The Tokenomics of the WLFI token
The total supply of 100 billion WLFI tokens is distributed as follows:
-
- 35% for the sale of tokens to the public;
- 32.5% for protocol growth and future incentives;
- 30% to early supporters of World Liberty Financial;
- 2.5% for the team and advisors.
In the “Gold Paper” of the project, it is indicated that “World Liberty Financial accepts that DT Marks DEFI LLC [entreprise de la famille Trump] receives 22.5 billion $WLFI tokens and the right to receive 75% of the protocol's net revenue as defined in the agreement after the agreed operational expenses and the initial cash reserve. »
22.5% of the tokens will therefore be allocated to the company DT Marks DEFI LLC and the remaining 7.5% to the company Axiom Management Group (AMG) owned by two co-founders: Zachary Folkman and Chase Herro.
World Liberty Financial: a movement to “strengthen the American dollar”?
More than a decentralized finance protocol, World Liberty Financial claims to be a movement to protect and strengthen the supremacy of the US dollar in a world increasingly dominated by digital.
According to World Liberty Financial's “Gold paper”, this project is part of the desire to maintain the American dollar as the world's reserve currency without falling under the control of central bank digital currencies (MNBC), often criticized for their centralization and increased surveillance.
At the heart of this initiative, the defense of the US dollar relies on the adoption of dollar-backed stablecoinswhich, according to the project, can support the liquidity and stability of the American financial system. Donald Trumpfervent defender of the American dollar, sees stablecoins as a strategic tool to counter the threats posed by geopolitical tensions, the emergence of competing currencies and the expansion of MNBCs.
Still according to the “Gold paper” from World Liberty Financial, the idea is that these stablecoins, by holding large reserves of dollars and Treasury bills, can help maintain the dominant position of the dollar without compromising the financial freedom of users. .
In short, World Liberty Financial presents itself as a DeFi protocol aimed at strengthening the US dollar in an increasingly digital financial environment. However, it is necessary to approach this project with caution, keeping in mind its political dimensions and the challenges inherent in such ambition.
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