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Overview: What Is WLFI?

rojsa - 2025-08-26 14:20:15

Overview: What Is WLFI?


WLFI is the native token of World Liberty Financial, a decentralized finance (DeFi) venture founded in 2024, explicitly connected to the Trump family. The company markets itself as bridging traditional finance (“TradFi”) and decentralized finance (“DeFi”)  .


Political and Corporate Ties

• The Trump family owns 60% of the company’s holding entity and is entitled to 75% of revenue from WLFI token sales .

• Key roles are held by family members: Donald Trump as “chief crypto advocate”, Eric Trump and Donald Jr. as “Web3 ambassadors”, and Barron as “DeFi visionary” .

• The company raised substantial investments from figures like Justin Sun and an Abu Dhabi state-backed firm, with foreign investments reaching billions—triggering concerns over conflicts of interest   .



Tokenomics & Launch Timeline


WLFI Token

• Total supply: 100 billion tokens (some sources mention up to 100 quadrillion), exact figures vary    .

• Unlock schedule:

• 20% of tokens (seed-round buyers at $0.015 and $0.05) unlock on September 1, 2025, via an on-chain Lockbox system.

• The remaining 80% will be released later—only through community governance votes     .

• Lockbox activation began on August 25, 2025, enabling early backers to unlock their tokens   .


Pre-Market & Valuation

• Perpetual futures trading began on major exchanges (Binance, Bybit, OKX), trading around $0.42, implying a $40 billion fully diluted valuation (FDV)   .

• WLFI’s circulating supply valuation is estimated between $2–4 billion .

• Entities linked to the Trump family hold about 22.5 billion tokens, worth over $9 billion at these prices  .



Stablecoin & Treasury Strategy


USD1 Stablecoin

• WLFI is accompanied by a stablecoin named USD1, supposedly backed by U.S. Treasuries and dollar reserves .

• The stablecoin has seen rapid growth, with about $2.4 billion in supply following a $205 million mint—making holders like World Liberty’s treasury reach record levels  .


ALT5 Sigma Treasury

• WLFI set up a “crypto treasury” approach via a deal with ALT5 Sigma, a Nasdaq-listed company:

• A $1.5 billion share sale (half paid in WLFI), giving ALT5 a ~7.5% stake in WLFI’s supply.

• Eric Trump joined ALT5’s board; Zach Witkoff became its chairman  .



Criticisms and Ethical Concerns


Conflicts of Interest

• The enterprise is seen as an unprecedented blurring of private business and public policy—raising ethical and legal red flags   .

• Foreign investments from entities in Abu Dhabi and China, along with halted regulatory actions, have drawn criticisms of influence-peddling   .


Sustainability and Investor Risks

• Observers warn of the “infinite money glitch”—a potentially unsustainable mechanism where voters and governance lack actual control or profit share   .

• Critics highlight the model may exploit political loyalty over economic fundamentals .



Summary Table


Aspect Details

Launch Year 2024

Total WLFI Supply ~100 billion tokens

Unlock Schedule 20% on Sept 1, 2025; 80% via governance

Futures Price ~$0.42 → implied FDV ~$40B

Trump Family Holdings 22.5B tokens (~$9B)

Stablecoin (USD1) $2.4B supply minted recently

Treasury Strategy ALT5 holds ~7.5% supply through $1.5B deal

Concerns Political conflicts of interest; investor risk



Final Thoughts


WLFI is more than a token—it’s a politically infused crypto experiment that blends DeFi dynamics with governance by one of America’s most influential families. With a structured unlock mechanism linked to governance, a massive speculative valuation ahead of its official listing, and strong ties to political power, WLFI is as much a statement as it is a financial instrument.


If you’re considering diving deeper into WLFI—whether for investment, governance participation, or analysis—I can help you explore specific aspects like token mechanics, market platforms, or regulatory outlook. Just let me know!