Trump-Backed WLFI Token Unlocks: Will Market Decipher Mystery of $2.26B Lockups?

World Liberty Financial's (WLFI) governance token is set to enter open trading on Sept. 1, 2025, marking a significant milestone for the Trump-backed DeFi platform. WLFI, which has raised $550 million in its token sale from over 85,000 investors, will transition from a non-transferable token used solely for governance to a publicly tradable asset. The token is now live on the Ethereum mainnet, with presale participants in the $0.015 and $0.05 rounds receiving an initial 20% unlock. The remaining 80% of these tokens will depend on a community governance vote to determine the vesting schedule. Tokens allocated to the team, founders, and advisors remain locked, providing a level of stability to circulating supply during this phase [2].

WLFI has also disclosed a fundraising history of eight public rounds with a nominal total of $2.26 billion. Of the public sale tokens, 80% remain without a specified unlock method, introducing uncertainty for market participants [1]. This lack of clarity raises concerns about potential sudden supply increases that could negatively affect WLFI's price dynamics. In contrast, the locked tokens for partners, teams, and advisors aim to mitigate short-term volatility. Traders are advised to monitor token vesting schedules through blockchain explorers and official unlock announcements to align their position sizing and liquidity strategies [1].

World Liberty Financial’s broader ecosystem has seen key developments, including the listing of its USD1 stablecoin on Coinbase and the launch of WLFI perpetual futures on Binance. USD1, backed by Treasury securities and other liquid assets, has achieved a market cap of $2.21 billion, ranking among the top five stablecoins [2]. The platform’s CEO, Chris Folkman, highlighted plans for an independent audit to enhance trust and transparency around USD1’s reserves. These moves are part of a $1.5 billion treasury strategy involving a major investment in ALT5 Sigma, where Eric Trump was recently appointed to the board [2].

The token’s transferability was granted in July through a community governance vote, signaling a shift toward open participation and broader utility. This change allows WLFI to be traded on peer-to-peer markets and secondary exchanges, potentially increasing liquidity and community engagement. Holders will also gain expanded voting rights on protocol decisions, including emissions and treasury policies [2]. However, the Trump family has reportedly reduced its stake in WLFI by 20% since December through DT Marks DeFi LLC, raising questions about future strategic direction and ownership alignment [2].

Market sentiment has been mixed, with WLFI already trading on secondary markets at around $0.42, significantly above its presale price. The token’s launch has drawn attention from major investors, including Aqua1 Foundation, which invested $100 million, and Justin Sun, who contributed over $90 million. DWF Labs has also provided $25 million in support. Additionally, WLFI integrates with Sui assets and utilizes Chainlink oracles for Ethereum price data, reflecting the project’s technical depth and strategic partnerships [2].

As WLFI prepares for its market debut, investors must weigh the risks of token unlocking ambiguities against the potential for increased liquidity and governance participation. The token’s performance will likely be influenced by broader market conditions, institutional flows, and on-chain activity. For traders, monitoring key metrics such as trading volume, price volatility, and whale movements will be crucial in assessing WLFI’s trajectory. With the token now transferable and listed across major platforms, the stage is set for a pivotal phase in WLFI’s development.

Source:

[1] WLFI Token Unlock Schedule and Fundraising Breakdown (https://blockchain.news/flashnews/wlfi-token-unlock-schedule-and-fundraising-breakdown-8-public-rounds-2-26b-disclosed)

[2] World Liberty Financial (WLFI) Token Launch: Key Dates and Full Details (https://www.ccn.com/news/crypto/world-liberty-financial-wlfi-token-launch-key-dates-and-full-details/)