What is World Liberty Financial?

Key Takeaways

With the U.S. election approaching, candidates’ business ventures and allegiances are under the spotlight. In a recent X Spaces on 16 September 2024, Donald Trump made waves with his latest crypto move: World Liberty Financial. 

The presidential hopeful announced his crypto project to his 90 million followers on X, drumming up a wave of interest and intrigue. But what exactly is World Liberty Financial? What does it offer everyday Americans, and how could it affect the U.S. election and the future of blockchain and cryptocurrency? 

In this article, we’ll cover everything we know so far about World Liberty Financial, including the WLFI token and what the project might mean for Trump’s campaign.

What is World Liberty Financial (WLFI)?

World Liberty Financial (WLFI) is an upcoming decentralized finance platform that seeks to make blockchain-based financial services more accessible to the public. With the war cry “Be DeFiant”, WLF has pledged to “put the power of finance back in the hands of the people”. Echoing Trump’s anti-establishment campaign messaging, the project has openly condemned the “rigged” traditional finance system.

At the helm of the DeFi platform are Donald Trump and his sons, as well as Zak Folkman (head of operations), Chase Herro (data and strategies), and Steve Witkoff. Folkman and Herro are crypto veterans, having previously worked on other crypto projects, while Witkoff is a friend of Trump and a real estate investor.

Donald Trump Jr., Eric Trump, and Steve Witkoff used the launch announcement to reveal key information about WLF. The platform’s core mission is to drive mass adoption of stablecoins and decentralized finance (DeFi) services. Users can borrow, lend, and earn interest on cryptocurrency via the WLF moneymarket. 

The WLFI project could compete with established DeFi platforms like Compound, Aave, and MakerDAO, which already allow users to lend or borrow crypto. With DeFi loans reaching $44 billion globally, World Liberty Financial is entering a highly competitive and rapidly growing space.

What Services Will World Liberty Financial Offer?

So far, the project is positioning itself as a decentralized financial hub for simple crypto lending and borrowing. Users will be able to deposit cryptocurrencies into the platform, lend them out for interest, or borrow against their holdings, all managed by smart contracts.

Shortly before announcing the launch during an interview on X, Trump had mentioned crypto’s steep learning curve for older generations, giving insight into the key messaging for World Liberty Finance. The team have emphasized the project’s ease of use and accessibility, distinguishing it from more complex DeFi platforms. The end goal is to lower the barrier to entry for everyday users who want to participate in decentralized finance.

What is WLFI Token?

At the core of World Liberty Financial will be its native governance token, WLFI. The tokens will play a crucial role in managing the platform, differing from typical cryptocurrencies in a few ways.

WLFI Token Utility

Unlike other cryptocurrencies, the WLFI token can’t be used for transactions or yield generation. Instead, it will be used uniquely for governance, meaning holders can use it to vote on the future direction of the platform. Decisions about updates, new features, and other key issues will be put to a vote.

This might make the token less appealing to speculators but anyone who’s in it for the long term will probably be interested in holding WLFI.

Tokenomics and Governance

According to project partner Chase Herro, 63% of the WLFI token supply will be sold to public investors with no pre-sales to venture capital. Another 17% of the token supply will be set aside for user rewards, incentivizing platform engagement. The final 20% will be reserved for the project’s team.

However, this summary is at odds with the supposed World Liberty Finance whitepaper, which circulated online earlier this month. According to this document, around 70% of the total token supply was allocated the founders and service providers. This is a sharp contrast with existing blockchain projects, which tend to reserve a maximum token allocation of 20% for the founding members. This has created some speculation about the goals behind WLFI.

With details of WLFI supply still awaiting clarification, it’s worth paying close attention for further announcements.

Can I Buy WLFI?

No, the WLFI token has not been released to the public yet. The platform has even warned users to be cautious of scams and fake tokens circulating online, as they haven’t officially launched. Once available, public investors will be able to purchase the WLFI token as part of the initial distribution.

Since the token won’t be transferable, it’s not clear whether we’ll see it listed on some of the popular decentralized exchanges such as Uniswap or Sushiswap.

What Does Trump’s Crypto Project Mean for the Future?

Trump’s announcement of World Liberty Financial marks a significant shift in his stance on cryptocurrency. While he once criticized digital assets, calling them “based on thin air,” his new venture reflects an embrace of blockchain technology. 

This transition signals a potential crypto-friendly stance if Trump wins the 2024 U.S. election. Specifically, it raises the possibility of a more open regulatory environment for digital assets. During the Bitcoin Conference 2024 in August, Trump said that he would fire SEC Chair Gary Gensler on day one.

With World Liberty Financial, Trump has entered the cryptocurrency ecosystem not just as a supporter, but as an active participant. This could resonate with younger voters and crypto enthusiasts, offering them a candidate who supports innovation in the financial sector. 

His campaign has already attracted attention from influential figures in the crypto space. Some of his supporters include Marc Andreessen (a16z), the Winklevoss twins (Gemini), and Jesse Powell (Kraken), solidifying his position as a pro-crypto candidate.

In contrast, Vice President Kamala Harris has maintained a more cautious stance on cryptocurrency, focusing on potential regulatory issues and consumer protection. This divergence in views between the two candidates may shape the future of U.S. crypto policy. 

Trump is advocating for a more hands-off, innovation-friendly approach and Harris is favoring stricter oversight.

Closing Thoughts

World Liberty Financial could have a lasting impact on both the cryptocurrency landscape and the U.S. election. By promoting DeFi and stablecoin adoption, he is positioning himself as a pro-crypto candidate, and potentially a crypto-friendly administration. 

A presidential candidate directly involved in the blockchain industry is uncharted territory. The crypto space will be watching closely in November to see what this means.