Donald Trump’s legendary crypto project, World Liberty Financial (WLFI), plans to offer borrowing and lending services for cryptocurrencies on the Ethereum blockchain. These services will operate similarly to decentralized finance (DeFi) applications, which allow financial transactions without intermediaries like banks. Trump’s project aims to be more “user friendly” than existing DeFi alternatives. Hence, it will utilize a non-transferable governance token, WLFI.
Despite the unsettling events of yesterday, our X Spaces with Donald Trump will proceed as scheduled. We admire Mr. Trump’s courage to continue in the face of adversity. Join us for a pivotal discussion on the future of cryptocurrencyhttps://t.co/MQit7yx3tp
— WLFI (@worldlibertyfi) September 16, 2024
A Look At Donald Trump’s Crypto Project
This crypto project is led by operations chief Zak Folkman and data and strategy head Chase Herro. Recently, they unveiled the token distribution plan and confirmed that WLFI’s token sale will be regulated by the U.S. Securities and Exchange Commission (SEC). During an interview, Folkman emphasized the fairness of the token distribution process.
“There have been no pre-sales and no VC, early buy-ins. It is just like any other DeFi project you can expect to see that’s launching now with incredibly fair token distribution,” Folkman said, according to Decrypt. According to the project’s white paper, 62.66% of the Donald Trump-backed WLFI’s token supply will be sold in a forthcoming token sale. Meanwhile, a portion of the net proceeds will be directed to the project’s multi-signature (multisig) wallet treasury reserve. Whilst, the remainder will go to the founders, team, and service providers.
Moreover, another 17.33% of the token supply will be allocated to incentivize community growth and participation in World Liberty’s governance. The remaining 20% will be given to the project’s team, advisors, and future hires. Furthermore, there are undisclosed portions allotted for the WLF Foundation, affiliates of the Trump Organization, and the Witkoff Group, led by Trump ally Steve Witkoff.
Previous Reports Deemed “Inaccurate”
According to previous reports, insiders would receive 70% of the token supply in Donald Trump’s crypto project. However, a source familiar with the project denied the claims, deeming them “inaccurate” but did not provide any further clarification. Upon review of what appears to be an updated draft of the white paper, it revealed different token allocations than those reported previously. It’s also important to note that some details of the project could still change as it moves forward.
Another significant detail is that WLFI tokens will be sold under the SEC Rule 506(c) of Regulation D. It means the tokens will be offered as “unregistered securities” to accredited investors. According to the SEC, accredited investors are individuals or entities who meet specific financial criteria. The criteria include:
- Earning at least $200,000 annually
- $300,000 collective annual income with a spouse
- Possessing a net worth of $1 million or more, excluding their primary residence.
All purchasers of WLFI will undergo a “know your customer” (KYC) screening process similar to those used by major crypto exchanges like Binance, Coinbase, and Kraken. Although WLFI tokens are not intended to be classified as securities, offering them under Regulation D allows World Liberty to comply with U.S. crypto regulations amid heightened regulatory scrutiny of DeFi projects.
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Source: https://www.cryptonewsz.com/trumps-ethereum-lending-service-token-feature/