Everything You Need to Know About Trump's New Token

Introduction

Donald Trump is back in the headlines—this time with a big splash into the world of cryptocurrency through his new project, World Liberty Financial (WLFI). Set to launch its token sale shortly, this DeFi platform aims to raise significant funds while positioning itself as a key player in the crypto space, with major election-year implications. Here’s a breakdown of what WLFI is all about and what makes it noteworthy.

What Is World Liberty Financial?

World Liberty Financial is a DeFi protocol spearheaded by the Trump family. Built on the Aave DeFi protocol and using Ethereum's Layer-2 Scroll network, WLFI plans to offer decentralized borrowing and lending services—similar to Aave's core functionality. The Trump family is looking to create a full-fledged financial ecosystem around this platform, complete with credit cards, real-world asset tokenization, and eventually centralized exchange integration​.

The WLFI token is at the heart of the platform. Here's how the token distribution is shaping up:

• 63% of the token supply will be sold to the public in various phases.
• 20% is allocated to the founding team.
• 17% will be set aside for user rewards.

Interestingly, 7% of the token supply will be given to Aave’s DAO as part of a deal to launch WLFI on Aave V3, which is expected to bring in roughly $105 million for Aave.

The Token Sale and Future Goals

The WLFI token sale aims to raise $300–$540 million, with the project valued at around $1.5–$1.8 billion at launch. This sale will fund the project’s growth and expansion, from establishing the platform's DeFi capabilities to introducing crypto-backed credit cards and fractionalized real-world assets like hotels and sports clubs​. However, the token will be non-transferable for 12 months and can only be used during voting on governance proposals.

There are also some ambitious plans beyond just the token sale. The initial phase involves deploying a version of the Aave DeFi lending protocol on Scroll, a Layer 2 scaling solution for Ethereum. Users will be able to lend and borrow various assets, including Bitcoin and Ether.

Future phases include:

• Integrating exchanges with on-chain KYC attestations
• Launching a credit card focused on stablecoins
• Fractionalizing real-world assets like hotels and sports clubs

Ties to Trump's Campaign

Given that the 2024 U.S. election is around the corner, Trump's promotion of World Liberty Financial has attracted attention. While it’s not technically owned or managed by Trump, his role as the platform's Chief Crypto Advocate is clear, and his sons serve as Web3 Ambassadors. This has sparked discussions about potential conflicts of interest, especially with Trump campaigning while pushing a personal crypto venture​.

Some watchdog groups have raised concerns about potential conflicts of interest, questioning whether Trump could influence federal crypto policy to benefit World Liberty Financial. There are also ties to Dough Finance, a previously hacked DeFi protocol, adding another layer of controversy around security.

Why Now?

Trump's pivot towards cryptocurrency comes at a time when digital assets are gaining mainstream acceptance. By launching World Liberty Finance during an election cycle, he aims to capture the interest of digital asset advocates and tech-savvy voters who may feel alienated by traditional financial systems.

Whether this will resonate with voters remains to be seen, but it certainly adds an intriguing layer to his political narrative as he navigates the complexities of both business and politics in today's digital age.

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