World Liberty Financial, a cryptocurrency initiative backed by Donald Trump, has reported over 100,000 signups ahead of its public WLFI token launch scheduled for October 15. During an extensive discussion on October 14, the platform’s head of operations, Zak Folkman, provided some details regarding the WLFI token, which is designed as an ERC-20 token on the Ethereum blockchain. The token will serve as the governance asset within the platform’s decentralized finance (DeFi) ecosystem.
Folkman reiterated details initially disclosed in a prior blog post, outlining the platform’s primary functions, which include enabling users to borrow and lend cryptocurrency, engage with liquidity pools, and facilitate transactions using stablecoins. Currently, access to the platform in the United States is restricted to accredited investors, a designation granted by the Securities and Exchange Commission to high-income individuals or those with substantial net worth.
Additionally, it was announced that Rich Teo, co-founder of Paxos, will take on the role of stablecoin and payments lead for World Liberty Financial. According to internal documents, around 63% of WLFI tokens will be allocated for sale to whitelisted public participants during the upcoming token launch. The remaining tokens will be distributed as user rewards or retained by the team.
Significantly, the WLFI token will be nontransferable for a year after distribution, although holders can utilize it for governance voting right away. The project aims to raise approximately $300 million from the token sales, potentially valuing it at around $1.5 billion.
In previous discussions, Aave’s CEO expressed enthusiasm about World Liberty Financial’s collaboration for its borrowing and lending infrastructure. The platform plans to kick off its operations as a DeFi lending service within the Aave framework and has ambitions to expand into an Ethereum layer-2 network. The token sale is strategically timed to commence three weeks before the U.S. elections on November 5, coinciding with Trump’s ongoing campaign to position the U.S. as a leading hub for cryptocurrency development.
