World Liberty Financial Announces Proposal to Make Token Transferable
Key Takeaway: World Liberty Financial is proposing to transition WLFI tokens from a closed system to freely tradable, aiming to increase decentralization and expand governance participation. Meanwhile, the Trump family has generated massive profits from crypto projects, leading to legal pressure and proposed legislation to limit government officials’ involvement in the cryptocurrency industry.
World Liberty Financial (WLFI), a decentralized finance protocol co-founded by US President Donald Trump’s family, has initiated a community proposal to make the WLFI governance token transferable and tradable across the entire cryptocurrency ecosystem.
The proposal is part of the project’s roadmap to transition to an “open participation” model by allowing the token to trade on secondary markets, including decentralized exchanges and peer-to-peer networks.
Currently, WLFI tokens operate within a closed system without external trading capabilities, substantially limiting governance participation and price discovery mechanisms. If approved, token holders would gain voting rights on critical protocols including token emissions, ecosystem incentives, and treasury management. Moreover, DEX listing is expected to enhance liquidity and accessibility for investors.
Concurrently, WLFI and Trump’s other crypto ventures face intensified scrutiny from Democratic lawmakers who cite potential conflicts of interest. Notably, achieving sufficient decentralization for WLFI could alleviate Congressional pressure currently obstructing comprehensive crypto regulation.
Trump Family Cuts Stake in WLFI as President Records Windfall Profits
Platform disclosures reveal the Trump family reduced its WLFI stake to 20% in June. DT Marks DeFi LLC, managing the family’s investment, initially controlled 75% ownership and has been systematically divesting 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 memecoin, non-fungible token (NFT) sales, an ownership stake in WLFI, and capital appreciation of other digital assets in his portfolio.
According to Bloomberg analysis, cryptocurrencies now constitute approximately 9% of the President’s $6.4 billion net worth.
The windfall profits and highly visible relationship with the crypto industry have led to proposed legislation aimed at limiting the president’s involvement with the industry.
In response to these high-profile profits, Democratic Congressman Adam Schiff introduced the COIN Act in June. This proposed legislation would prohibit the President, immediate family members, and Executive Branch officials from issuing or promoting specific cryptocurrencies. The bill explicitly targets potential conflicts of interest arising from officials’ crypto engagements.
