World Liberty Financial Issues Proposal to Make Token Transferable
A proposal from World Liberty Financial (WLFI) seeks to shift the protocol’s governance framework from a closed system to a more inclusive, DeFi-focused model.
Key Takeaways:
ShowCommunity-Driven Transition to Open Governance
Co-founded by members of US President Donald Trump’s family, WLFI has put forward a community initiative that would enable its governance token to be freely transferred and traded throughout the broader crypto ecosystem.
Breaking the Closed Loop: Enabling Token Mobility
Under the current setup, the WLFI token remains confinsed to the platform, preventing trading on external markets and constraining both governance participation and market-based price discovery.
Approval of the measure would empower token holders to influence decisions on emission schedules, incentive structures, and management of the treasury.
Navigating Political Crosswinds: Conflict of Interest Concerns
Trump’s involvement—and that of his other crypto ventures—has attracted criticism from Democratic legislators, who argue it poses conflicts of interest.
By sufficiently decentralizing WLFI, the project could alleviate some of the Congressional scrutiny impeding wholesale regulatory reform.
Trump Family Trims Wlfi Holdings Even as Trump Reports Major Gains
In June, DT Marks DeFi LLC—the entity through which the Trump family holds its WLFI shares—cut its ownership stake by 20%, down from an initial 75%, continuing a gradual divestment that began in December.
In a June disclosure to the US Office of Government Ethics, President Trump reported realizing $57 million in profits from WLFI alone.
Across his various crypto undertakings—including the Official Trump memecoin by 2025, NFT sales, his WLFI stake, and other digital assets—he has added approximately $620 million to his personal fortune.
Bloomberg estimates that crypto that own by Trump now make up about 9% of his $6.4 billion net worth.
Those substantial gains and his prominent ties to the crypto sector have prompted Democratic Congressman Adam Schiff to introduce the COIN Act, which would bar the president, his immediate family, and senior Executive Branch officials from creating or promoting individual cryptocurrencies.
Final Words
Although Trump’s recent comments at the White House conference, explaining how Bitcoin has been putting pressure on the dollar—were a breath of fresh air, he remains an undeniably controversial figure in the crypto landscape.
By opening token transfers and embracing decentralized governance, WLFI aims to broaden its community base, enhance market transparency, and reduce political friction.
If adopted, this proposal could mark a pivotal step toward a truly permissionless DeFi model—one that balances robust token‐holder engagement with a clear separation from high‐profile political associations.
