WLFI will serve as the governance token for the World Liberty Financial ecosystem.
More than 100,000 people are reportedly signed up for World Liberty Financial (WLFI), Donald Trump’s cryptocurrency initiative, ahead of its token launch on October 15.
With the release of its Ethereum-based ERC-20 governance token, WLFI, the platform—which bills itself as a decentralized finance (DeFi) initiative—will provide users with a range of DeFi features, such as stablecoin transactions, lending, and borrowing.
WLFI to Serve as Governance Token
In an X Space on October 14, the platform’s head of operations, Zak Folkman, confirmed details about the upcoming token launch.
He restated that the World Liberty Financial ecosystem’s governance token will be WLFI.
Team members Chase Herro and Zach Witkoff joined Folkman, reiterating previously published details from a blog post dated October 11.
The platform’s objective is to enable users to communicate with liquidity pools and take part in lending and borrowing based on cryptocurrency.
However, only accredited investors will be able to use World Liberty Financial’s services in the United States.
The Securities and Exchange Commission (SEC) has established certain financial requirements that these investors must fulfill, such as making over $200,000 a year and owning over $1 million in assets.
— WLFI (@worldlibertyfi) October 14, 2024
Folkman also revealed a new team member during the X Space.
Rich Teo, a co-founder of Paxos, will oversee the stablecoin and payments division and contribute his knowledge of blockchain technology to the project.
According to the WLFI tokenomics, during the October 15 launch, 63% of the tokens will be sold to whitelisted members of the public, 17% will be distributed for user rewards, and 20% will go to the project’s team.
A leaked white paper states that while holders of WLFI tokens will be able to use them right away for platform governance voting, the tokens will not be transferable during the first year.
The project is valued at about $1.5 billion, and the white paper sets an ambitious fundraising target of $300 million through the token sale.
World Liberty Financial Will Focus on DeFi Lending
The platform’s main purpose will be to facilitate DeFi loans.
Nevertheless, there are also intentions to extend to the Ethereum layer-2 network Scroll, with the first launch occurring on the well-known decentralized lending platform Aave.
Stani Kulechov, the CEO of Aave, briefly spoke in the X Space and shared his enthusiasm for World Liberty Financial’s use of Aave’s lending and borrowing capabilities.
Donald Trump Jr., the project’s “Web3 Ambassador,” blasted the American banking system and called it a “Ponzi scheme” in a brief speech given during the Space. He praised the platform as a step toward financial inclusivity.
As previously reported, a poll by Fairleigh Dickinson University (FDU) Poll indicates that people who own cryptocurrency are more likely to support former President Donald Trump, while people who do not own any digital assets are more likely to support Vice President Kamala Harris.
FDU Poll executive director and professor of government and politics Dan Cassino conducted the poll, which revealed that 50% of respondents back Trump, who has recently taken an active stance in favor of virtual currencies.