- WLFI unlocks 20% of tokens on Sept 1, with 80% pending a future community governance vote.
- The Trump family controls 60% of WLFI, sparking concerns over influence and token direction.
- $2B Abu Dhabi backing boosts WLFI’s profile but raises regulatory and ethical questions.
World Liberty Financial (WLFI), a decentralized finance (DeFi) project, is set to unlock its native token on September 1, 2025, at 12:00 UTC. The token will operate on the Ethereum mainnet and will initially release 20% of its total supply to eligible early-stage investors. These tokens were originally purchased at pre-sale rounds priced between $0.015 and $0.05.
The remaining 80% of tokens will not be unlocked immediately. Their future release will be determined by a community governance vote. This method positions WLFI as a community-led DeFi protocol, highlighting the importance of decentralized decision-making in the token’s long-term roadmap. However, significant centralized ownership raises questions regarding the true nature of that decentralization.
Trump Family Ties and Centralized Revenue Streams
WLFI has drawn substantial attention due to its reported ties to the Trump family. The family reportedly holds a 60% controlling interest in World Liberty Financial and is entitled to receive 75% of the revenue generated from token sales. This high concentration of control and revenue entitlement presents a potential conflict of interest, especially within a system marketed as decentralized.
A community-controlled governance model that allocates future token unlocks to the community could be easily overshadowed by the Trump family’s dominant interest. Critics argue that this degree of interference may subvert independent governance initiatives and corrupt project choices.
Foreign Investment and National Security reasons
WLFI has received international investment, with reported investment of $2 billion from an Abu Dhabi-based company. Although the international capital inflow is favorable to fund the project, it raises concerns of international influence in politically sensitive financial platforms. This activity might attract greater regulatory concern from financial regulatory agencies in the United States.
Regulators will surely examine the operation of the project in relation to political entities and foreign investors. Such relationships can also attract probing into anti-money laundering (AML) provisions as well as foreign investment regulations. The fact that such a politically tangled DeFi project had zero precedent also adds more confusion in terms of regulation.
Token Security and Trading Rollout
The WLFI token will become tradable on both decentralized and centralized exchanges. Trading will commence following a preparatory period, during which the WLFI Lockbox, a smart contract-based token vault, will be activated. The Lockbox will be opened on August 25, offering a one-week window for users to prepare for token claiming.
Whilst the Lockbox contract has had an exhaustive audit conducted by Cyfrin, a Web3 security firm. Most wallets will appear to be zero until claimed tokens are actively claimed. This design assists in avoiding premature misinterpretation of token allocation. Founders, team members, advisors, and partners will not be allowed to trade or claim their tokens during the initial unlock period.
Related: World Liberty Plans Nasdaq-Listed WLFI Token Treasury
Market Impact And Community-Driven Governance
The launch is expected to trigger significant market activity, fueled by the strong initial support that saw WLF raise $550 million through the sale of WLFI tokens. However, the decision to delay the release of 80% of tokens introduces a layer of uncertainty that could add volatility to the market.
Community members will be able to determine which unlocks will take place in the future through governance votes. Although this demonstrates a faith in a decentralized structure of management, the extent to which these votes will be neutral is questionable, due to the majority control of the Trump family. Critics have pointed out that the model of the project can blur the border between government and top-down management.
