First of all, Happy Mid-Autumn Festival!
The team behind the Trump family's cryptocurrency project World Liberty Financial said the project will provide lending services for cryptocurrencies on the Ethereum blockchain network, which is no different from the large number of existing applications in DeFi.
It promises to be more “user-friendly” and accessible than existing high-tech alternatives, and will be based on the non-transferable (meaning non-tradable) WLFI governance token.
The World Liberty Financial crypto team, led by Zak Folkman, head of operations, and Chase Herro, head of data and strategy, released new details about the WLFI token distribution plan today, making it clear that the sale of tokens will be regulated by the U.S. SEC. Folkman said in an interview today: "There is no pre-sale, no venture capital, and no early purchases. "This is just like any other DeFi project you can expect to see, and the token distribution that is launched now is very fair. "
According to an excerpt from its white paper, the majority of the token supply (62.66%) will be distributed in the upcoming token sale, with a portion of the net proceeds going to the project’s multi-signature wallet treasury reserve. The remaining net proceeds will be paid to the project’s founders, team, and service providers.
Approximately 17.33% of the WLFI supply will be dedicated to incentivizing participation in World Liberty governance development, as well as other community growth initiatives.
The remaining 20% of the token supply will go to the project team, advisors and future employees, and a portion of WLFI will be earmarked for the WLF Foundation, an affiliate of the Trump Organization, and the Witkoff Group, which is run by longtime Trump ally and friend Steve Witkoff, a participant in World Liberty.
There is an introduction to WLFI’s token at the end of the article.
Recently, I have been thinking that the application of blockchain, from Bitcoin to Ethereum, seems to have stagnated. It has been so many years since everyone has called for the blockchain revolution. There is still no widespread application. Is this a story about the lack of infrastructure, or is it that the application of blockchain in human society seems to be dispensable in essence?
Is everything just at the token level? Can technology really not bring new vitality to the development of society?
Today I saw the release of the Trump family token, and at present it is still used for lending in DEFI.
At present, the popularization and application of blockchain still mostly stays in the financial field. Capital or assets are the easiest to land, after all, profitability means the effectiveness of the tool.
Currently, the ETFs of BTC and ETH are regulated by the SEC. Other tokens are not actually regulated by the SEC. WLFI is actually the third one. And it is a decent and legal blockchain token. In fact, this is a good phenomenon.
Ethereum has not had many breakthroughs in all these years, and this WLFI was generated on the Ethereum chain. This also shows that if you want to have a good coin issuance project in the encryption field, Ethereum is still the first choice.
The Trump family is the first, but they will not be the last. I believe that there will still be other families or companies that use Ethereum to build new businesses. In fact, this day will come, but we don’t know when more companies will land on Ethereum.
WLFI Introduction:
Initiators: The Trump family, especially Trump's second son Eric Trump and eldest son Donald Trump Jr., play an important role in the project. Trump himself serves as the "chief cryptocurrency advocate."
Team composition: The project team includes several executives and professionals with extensive experience in the DeFi field. For example, Zachary Folkman and Chase Herro, co-founders of Dough Finance, are listed as the project’s head of operations and head of data and strategy.
II. Project Goals and Vision
Goal: Cut out inefficient middlemen, return financial power to ordinary people, and modernize the financial system to provide equal opportunities for everyone.
Vision: Through the WLFI project, the Trump family hopes to ensure that the United States becomes a leader in the cryptocurrency field and promote change and innovation in the global financial system.
3. Technical Architecture and Functions
Technical basis: The project will be built on Ethereum and the decentralized lending platform Aave, using the decentralized, transparent and tamper-proof characteristics of blockchain technology to improve the efficiency and security of financial services.
Features:
Credit account system: Promote decentralized lending activities and provide users with more convenient financial services.
Non-transferable governance token WLFI: The project plans to issue a non-transferable governance token WLFI for the project's governance and decision-making process. The transfer restriction of this token may reduce speculation and make the project more stable and reliable.
IV. Market Response and Risks
Market response: The launch of the WLFI project has attracted widespread attention from the market. On the one hand, the influence of the Trump family has brought a lot of attention and potential investors to the project; on the other hand, the project's innovation and vision have also attracted many investors and users who are interested in the DeFi field.
Risk Warning:
1. Token Allocation Dispute
Token distribution: In WLFI's governance token plan, up to 70% of the tokens will be held by founders, teams and service providers. This ratio far exceeds that of other well-known crypto projects and is considered abnormal by industry insiders.
Remaining distribution: The remaining 30% of tokens are planned to be distributed through public sales, and part of the proceeds will be used for project operations.
Team response: The WLF team emphasized that the token economics plan has not yet been finalized, showing a certain degree of flexibility.
2. The problem of power concentration
Gap between concept and reality: Although the project claims to “return financial power to the people”, the token distribution shows that power is highly concentrated in the hands of a few insiders, which is contrary to the original intention.
Token Features: WLFI tokens are set to be non-transferable, a move that may be intended to circumvent securities laws, but also further exacerbates concerns about the concentration of power.
3. Political and legal risks
Impact on election prospects: Some Trump supporters are concerned that the project may have an adverse impact on his election prospects.
SEC attention: Given the high-profile promotion of the project and the deep involvement of Trump family members, the project has become a focus of attention of the U.S. Securities and Exchange Commission (SEC).
Attempts at political decoupling: The project white paper attempts to distinguish the project itself from political activities through content description to reduce potential political and legal risks.
In summary, the WLFI encrypted lending platform faces many challenges and controversies in terms of token distribution, power concentration, political and legal risks, and its future development path and market acceptance remain to be seen.
