World Liberty Financial Proposes Open Governance Shift

World Liberty Financial, a decentralized finance protocol co-founded by the family of former US President Donald Trump, has proposed a significant shift in its governance model. The community proposal, initiated on July 4, aims to transition the protocol from a closed governance system to a more open, decentralized finance-oriented model. This move would allow the WLFI governance token to be transferable and tradable across various crypto ecosystems, including decentralized exchanges and peer-to-peer networks.

Currently, the WLFI token operates within a closed system, limiting its governance pool and price discovery. By making the token transferable, World Liberty Financial seeks to enhance its decentralization and broaden its market access. If approved, WLFI token holders will gain the ability to vote on token emissions, ecosystem incentives, and treasury policy, fostering a more democratic governance structure.

The proposal aligns with World Liberty Financial's narrative of freedom, autonomy, and decentralized governance, symbolically launching on U.S. Independence Day. This initiative is part of the project's roadmap to transition to an "open participation" model, which could alleviate some of the regulatory hurdles and Congressional pressure that have been scrutinizing Trump’s crypto ventures.

The Trump family has been reducing its stake in WLFI since December, with a 20% reduction in June. DT Marks DeFi LLC, the entity managing the family’s investment, initially held a 75% stake in the company. The family’s decreasing involvement in WLFI reflects a strategic move towards decentralization, which could help mitigate conflicts of interest and regulatory scrutiny.

The proposal to make the WLFI token transferable is a pivotal step towards decentralizing the governance of the protocol. By allowing the token to trade on secondary markets, World Liberty Financial aims to attract a broader user base and enhance the token's liquidity. This shift could also alleviate some of the regulatory pressures that have been holding up comprehensive regulatory reform, as a more decentralized structure could reduce the perception of conflicts of interest.

The proposal's release on July 4th, U.S. Independence Day, is a strategic move that underscores the protocol's commitment to freedom and autonomy. This symbolic date aligns with the values of decentralized governance and open participation, which are central to the ethos of decentralized finance. The initiative is part of a broader roadmap to transition WLFI from a closed system to a more open and inclusive model, which could attract a wider range of participants and enhance the token's utility.

World Liberty Financial proposes that some tokens held by early supporters will be eligible for unlocking. Yet, only a percentage will be unlocked at first. The rest of the supply will be open to a second community vote for the release schedule. On the other hand, founders', team members', and advisors' tokens will remain locked for a longer time to demonstrate long-term commitment to the vision of the project. The project raised $550 million by selling its tokens, with support from more than 85,000 investors who took part in the sale.

The WLFI team indicates that this proposal is following healthy growth in product development and user interest. As demand in the community becomes greater, World Liberty Financial proposes that this is the time to enable trading. The team feels that this action will garner wider attention. It will provide the project with more momentum as it continues to develop partnerships and add features.

The move comes as political heat rises around Trump’s crypto ties. World Liberty Financial proposes this shift as lawmakers debate the COIN Act, a bill introduced by Senator Adam Schiff. This bill would ban Presidents and their families from holding or promoting crypto while in office. Schiff claims Trump earned millions from crypto ventures, including NFTs and digital tokens. By increasing decentralization, World Liberty Financial proposes to reduce the influence of the Trump family over the protocol.

In case of approval by the community votes, the WLFI will be tradable, and early adopters will get their tokens. This will also cause initiation of complete community governance. In case the suggestion is rejected, the token will be considered non-transferable, and the ecosystem stays closed. World Liberty Financial proposes this bold step to empower its users, grow the protocol, and navigate rising political pressure. Now, it is up to the community to decide the project’s future.