In a Trump-Backed Crypto Project, Insiders Brace for Unusually Large Token Payouts
The team could get 70% of World Liberty Financial tokens, a significantly higher allocation than normal in a project marketed as a solution to the âriggedâ traditional financial system.
World Liberty Financial, the new cryptocurrency lending platform promoted by former US President Donald Trump and his children, is billed as a way to âput the power of finance back into the hands of the peopleâ and a solution to the âriggedâ traditional financial system.
A draft of the projectâs white paper reveals that the vast majority of the power promised by World Liberty Financial will be concentrated in the hands of a select few members: 70% of WLFI, the projectâs âgovernanceâ crypto token, will be âheld by the founders, team, and service providers.â
The remaining 30%, according to the white paper, will be distributed âvia a public sale,â with some of the money raised also going to project insiders, though a portion will be set aside in a treasury âto support the operations of World Liberty Financial.â
A 70% allocation to insiders is unusually high.
Ethereumâs Genesis block reserved a combined 16.6% of ETH for the Ethereum Foundation and early contributors (though co-founder Vitalik Buterin later said they received even less).
The three companies behind Cardano, another popular blockchain project, retained a combined 20% of ADA at launch.
Satoshi Nakamoto, the pseudonymous creator of Bitcoin, is estimated to own just over 5% of the total supply.
When asked, if a 70% allocation to insiders is high? a source who advises early-stage projects replied:
âLMAO. Good joke, Ser.â
World Liberty Financial has not yet finalized its plans, according to a person familiar with the project.
