Trump Family Crypto Venture WLFI Seeks Token Tradability

World Liberty Financial (WLFI), a decentralized finance protocol co-founded by the family of former US President Donald Trump, has initiated a community proposal to make its governance token transferable and tradable across the crypto ecosystem. This move is part of the project's roadmap to transition to an "open participation" model, allowing the token to be traded on secondary markets, including decentralized exchanges and peer-to-peer networks.

The current state of the WLFI token is confined to a closed system, limiting its governance pool and price discovery. If the proposal is approved, token holders will gain the ability to vote on token emissions, ecosystem incentives, and treasury policy. This shift towards decentralization could alleviate some of the regulatory scrutiny that WLFI and Trump’s other crypto ventures have faced, potentially easing Congressional pressure on comprehensive regulatory reform.

The Trump family has been gradually reducing its stake in WLFI. In June, the family decreased its stake by 20%, with DT Marks DeFi LLC, the entity managing the family’s investment, initially holding a 75% stake. The family’s LLC has been reducing its stake since December. The president reported a $57 million profit from WLFI in a June financial disclosure with the US Office of Government Ethics. In total, Trump reportedly added $620 million to his net worth through various crypto projects, including the Official Trump (TRUMP) memecoin, non-fungible token (NFT) sales, an ownership stake in WLFI, and capital appreciation of other digital assets held in his portfolio.

The windfall profits and the highly visible relationship with the crypto industry have led to proposed legislation aimed at limiting the president’s involvement with the industry. Democratic lawmakers have introduced the Curbing Officials’ Income and Nondisclosure (COIN) Act, which would limit the president, immediate family members, and officials in the Executive Branch from issuing or promoting specific cryptocurrencies.

WLFI's proposal to make its token fully tradable marks a significant shift in the token's utility. Previously restricted to voting on proposals within the WLFI ecosystem, the token will now allow users to send, receive, and trade it. This change is expected to increase transparency, utility, and community participation within the WLFI ecosystem. The decision to propose tradability comes after a year of development, partnerships, and growing community interest, with many members expressing a desire to trade WLFI and participate more directly in the project.

If the proposal is approved, certain WLFI tokens that were previously sold to early backers will be unlocked and made available for use. The remaining tokens will stay locked until a second community vote determines their release. Tokens owned by the team, founders, and advisors will remain locked for an extended period to demonstrate their long-term commitment to the project. The proposal also outlines that if the vote succeeds, WLFI will facilitate token transferability, unlock part of the early supporter tokens, and initiate full community governance. This includes voting on future token unlocks and ecosystem rewards. Conversely, if the vote fails, the token will remain non-transferable, and WLFI will continue to operate as a closed network.

The move towards making WLFI tradable is seen as a significant step towards decentralization, aligning with the broader trend in the cryptocurrency space. Projects are increasingly looking to give more control and participation to their communities. This proposal not only enhances the utility of the WLFI token but also opens up new avenues for community engagement and governance.