The long-awaited details of the Trump family’s new venture, World Liberty Financial, were revealed Monday night during an X Space livestream.
THE Live Stream Xwhich welcomed more than 830,000 participants, saw the team unveil the details of the decentralized finance (DeFi) project. The founders released information about World Liberty Financial, including who would be able to purchase the tokens the protocol would release and how the tokens would be allocated.
Protocol details
While Monday’s livestream didn’t shed much light on how the project works, it did reveal the team’s decision to offer tokens to eligible investors. One of the founders of World Liberty Financial and popular crypto influencer Zak Folkman, revealed the tokenomics of the project’s non-transferable governance token, WLFI.
Folkman read a pre-written statement that said 63% of WLFI’s total supply would be reserved for public purchase, 17% of the token would be used to reward users, and 20% of the governance token would be allocated to the team behind the project. Notably, the details did not contain WLFI’s total supply.
The founder also revealed that the project would not offer venture capitalists the privilege of a pre-sale or early purchase of the token. Folkman implied that all public tokens would be accessible to users with equal opportunities.
It is worth mentioning that tokenomics squashed a previous report of foul play by the protocol team. Speculations circulated that the protocol had allocated 70% of the WLFI token to the team, raising concerns about the credibility of the DeFi initiative.
The operations of World Liberty Financial remain officially unknown. However, a report revealed that the team plans to offer users cryptocurrency lending, borrowing and trading services. Eric Trump also teased that the project was like a digital real estate asset intended to disrupt the traditional financial system.
Regulatory barriers limiting participation
On Monday, part of the revelation was that U.S. citizens have limited access to the WLFI governance token. Folkman noted that the lack of regulatory clarity in the U.S. forced them to make this decision. As a result, only accredited investors could purchase the token.
He stressed that even though the WLFI token was not a security, this approach was imperative to avoid conflicts with the U.S. Securities and Exchange Commission. Folkman added that non-U.S. investors would also see a similar hurdle with applicable laws in their region.
WLFI will be offered as a Class D token with the US SEC. This asset class could be sold to investors without prior registration with the regulator provided certain parameters are met.
Trump mocks US SEC
Trump didn’t mince words when analyzing the obstacles posed by unclear U.S. regulations on the reserved offering of the WLFI token. He frowned at the securities watchdog’s continued crackdown on the cryptocurrency industry and indicated his interest in making a difference.
“We will make our country greater than ever, and you will be happy and you will love your cryptocurrency,” Trump said.
Trump also addressed his initial skepticism toward the cryptocurrency industry, citing his sons as playing a role in that change of heart. He also said he reconsidered his initial stance when proceeds from sales of his Trump-branded non-fungible token collections were paid in cryptocurrencies.
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