Donald Trump’s World Liberty Financial DeFi protocol team has revealed details about the tokenomics of the project

What’s new? Former US President Donald Trump’s DeFi protocol World Liberty Financial will organize the sale of non-transferable WLFI governance tokens, due to uncertainty with the sector’s regulation, only accredited investors will be allowed to buy. The tokensale will be overseen by the US Securities and Exchange Commission (SEC), with 62,66% of the asset offering allocated to it.

Material by The Block

What else is known? Part of the net proceeds from the tokensale will go to the project’s multi-signature wallet reserve fund. The rest of the net proceeds from the sale will be paid to the project’s founders, team, and service providers.

As Decrypt journalists reported citing the project’s White Paper, another 17,33% of the WLFI offering will be reserved for user rewards, incentives to increase participation in project management and other community development initiatives.

The remaining 20% of the offering will be allocated to the project team, consultants and future employees. An undisclosed portion of the WLFI will go to the WLF Foundation, affiliates of the Trump Organization and the Witkoff Group, which is run by longtime Trump ally and friend Steve Witkoff.

This was also announced by Dough Finance co-founder Zachary Folkman during a joint stream with Trump and Witkoff on social network X. The politician himself, announcing the launch of World Liberty Financial, said that the project will surpass ‘the slow and outdated big banks”.

Trump stated that he changed his view of the crypto industry under the influence of his children, as well as the success of his own NFT collections, the sale of which brought over $7 million. He admitted that he was initially not too interested in the industry, but was surprised by the huge profits.

Finally, the participant of the upcoming presidential election noted that the crypto industry, although already significant and promising, is still very young.

The first details about the project appeared in late August. Then Trump’s sons, Donald Jr. and Eric, hinted that World Liberty Financial would offer an alternative to traditional banking services without intermediaries.

In early September, media outlets reported that the project is being created based on the Aave DeFi protocol on the Ethereum blockchain and will use a system of credit accounts. The creators said they prioritize security and want to encourage the adoption of stablecoins.

Among other things, DeFi technology allows users around the world to profit from stablecoins such as Tether’s USDT and Circle’s USDC, providing liquidity to decentralized credit platforms.

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As part of his new election campaign, Trump has taken a course to support the crypto industry. He started accepting cryptocurrency donations, pledged to support local miners, and stated that the US should become the cryptocurrency capital of the world.

He also claimed that if re-elected, he would stop the sale of government bitcoin assets and fire SEC head Gary Gensler, under whose watch numerous cases have been brought against crypto firms including Binance, Coinbase, Kraken, and Ripple. Trump also pardoned the creator of the Silk Road darknet marketplace, Ross Ulbricht, who received a life sentence and has been in prison for 11 years.