World Liberty Financial Proposes Token Tradability for Decentralization

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.

Currently, the WLFI token operates within 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 faced by WLFI and Trump’s other crypto ventures, which have drawn criticism from Democratic lawmakers concerned about potential conflicts of interest.

The Trump family has been gradually reducing its stake in WLFI. In June, the family decreased its holding 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 in the platform 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 Congressman Adam Schiff introduced the Curbing Officials’ Income and Nondisclosure (COIN) Act in June, which would limit the president, immediate family members, and officials in the Executive Branch from issuing or promoting specific cryptocurrencies.

This proposal to make the WLFI token tradable is a strategic step towards decentralizing the platform's governance. By allowing tokens to be traded freely, World Liberty Financial aims to foster a more inclusive and democratic community. This shift is likely to attract new investors and users, further strengthening the platform's position in the market. The announcement of the WLFI token's tradability has generated considerable interest within the crypto community, with the voting process now open for token holders to participate in shaping the future of the WLFI ecosystem.