Trump-Backed Crypto Project Reserves 70% of WLFI Tokens for Insiders

The crypto world is buzzing about a new development: according to a recent article titled ‘СМИ: команда и инвесторы криптопроекта сыновей Трампа получат 70% от предложения WLFI’, a significant portion of the WLFI tokens from the Trump-backed project, World Liberty Financial, will be allocated to insiders.

Token Allocation and Public Sale

The WLFI token allocation strategy reveals that **70% of the tokens are reserved for founders, developers, and large investors**. This leaves only **30% of the tokens to be distributed through a public sale**. This allocation strategy is noteworthy, especially when compared to other crypto projects. For instance, the decision by the developers of the Eigen Layer protocol to reserve 55% of tokens faced substantial criticism for perceived greed.

Token Lock and Buyer Screening

To add another layer of complexity, the **WLFI tokens will be locked in wallets and smart contracts indefinitely**, according to the draft white paper. This move could potentially stabilize the token’s value but also raises questions about liquidity and accessibility for the average investor.
Furthermore, every buyer of WLFI will undergo a thorough screening process to ensure they are not subject to U.S. sanctions. This compliance step adds a layer of security and adherence to international regulations, but it could also limit the token’s accessibility.

Uncertainty Surrounding Final White Paper

It’s important to note that the final version of the white paper is still under development. A source close to the project mentioned that the **World Liberty Financial team is collaborating with multiple stakeholders** and has not yet finalized their tokenomics strategy. This ongoing development phase means that the details could still change.

Technical Foundations and Market Comparisons

Interestingly, leaked fragments of the project’s technical document suggest that **World Liberty Financial’s system is partially based on the code of the Dough Finance credit protocol**. This technical foundation could influence the project’s functionality and market perception.
The 70% token allocation for insiders is particularly striking when compared to other projects. For instance, when Eigen Layer developers reserved 55%, it sparked a wave of criticism. The 70% reservation for WLFI could potentially face similar scrutiny.

Implications for the Crypto Market

The World Liberty Financial project, supported by Donald Trump’s family, is already making waves in the crypto community. The substantial allocation to insiders could raise questions about fairness and decentralization, key tenets of the crypto ethos. However, the token lock mechanism and buyer screening process could also position WLFI as a stable and compliant asset in a volatile market.
As the final details of the white paper and tokenomics are still pending, the crypto community will be watching closely for updates. The decisions made by the World Liberty Financial team could set new precedents and influence the strategies of future crypto projects.