Trump-Backed WLFI Token Proposes 100% Tradability for Open Governance

World Liberty Financial (WLFI), a decentralized finance protocol co-founded by members of the Trump family, has proposed a significant move towards decentralization by introducing tradability for its WLFI token. This initiative, announced on July 4, 2025, aims to transition WLFI from a closed system, where tokens are locked within the platform, to an open-participation model. This shift is designed to facilitate price discovery, peer-to-peer trading, and broader utility, enabling stakeholders to participate more actively in governance decisions, including emissions schedules, ecosystem incentives, and treasury operations.

The proposal, now open for community voting, is a symbolic step for the Trump-backed decentralized finance (DeFi) movement. It aligns with the ideals of financial independence and market transparency celebrated on Independence Day. The WLFI team emphasized the significance of this milestone, stating, “Crypto is coming home,” and linking it to the ideals of freedom and independence. If passed, the proposal could reduce legislative scrutiny from lawmakers who have raised concerns about the Trump family’s personal ties to crypto. Increased decentralization could help WLFI meet new regulatory standards for digital asset platforms in the US.

Further affirming the push for decentralization, the Trump family has taken steps to reduce its concentrated ownership of WLFI. DT Marks DeFi LLC, the entity representing the Trump family’s interest in WLFI, reduced its stake from 75% to 55% in June 2025. This move follows mounting criticism from Democratic legislators, who argue that the president’s deep financial ties to crypto projects pose a potential conflict of interest. WLFI’s latest push toward a fully decentralized governance model may serve to shield the protocol from further political pressure and enhance its legitimacy among institutional players.

Should the community approve, WLFI’s tradability will make it available on secondary markets, enhancing liquidity. In contrast, coins held by insiders like the Trump family will remain locked. This seeks to prevent sudden market shifts. Initially, only specific token holders, excluding key insiders, will benefit from trading. The proposal highlights a gradual approach to market participation, emphasizing plans for broader decentralization and control. This initiative is likely to shift market dynamics by enabling price discovery and potential liquidity improvements. Trading decisions could impact market behaviors and crypto engagement. Nonetheless, key insiders, including the Trump family, retain a restricted lockup period to ensure stability.

Insider lockups are common in such high-profile crypto launches. Striking similarities with initiatives from projects like Compound and Uniswap, WLFI’s planned governance shift could serve as a stress test for decentralized governance effectiveness. Investor interest might increase demand if trading sees listing on major decentralized exchanges. World Liberty Financial’s leadership emphasizes efforts to increase user participation through governance voting. Historically, this mirrors activities within major DeFi projects, yet questions remain on how markets and regulation will respond to this project.

The transition from a governance-only token to a fully tradable asset represents a significant milestone for the Trump-backed crypto project. As the market adapts to this new tradable asset, all eyes will be on how WLFI navigates the opportunities and challenges ahead, setting a precedent for future decentralized finance projects. The proposal to make the WLFI token tradable is a major step towards open governance and broader market access, aligning with the momentum of U.S. crypto legislation and a broader shift toward decentralization in the digital asset space.