World Liberty Financial Token Sale

The token sale for World Liberty Financial—a DeFi project linked to former U.S. President Donald Trump and his three sons— is slated to start next week, according to a roadmap shared with prospective investors that was seen by The Block.

The roadmap indicates that the “initial sale” of WLFI will aim to raise $300 million. It will sell 20% of the token supply at a $1.5 billion fully diluted valuation.

This suggests there could be more token sales to follow. In an X Spaces last month, co-founder Zak Folkman stated that 63% of the token supply would be sold to the public, with 17% allocated to user rewards and 20% designated for the team.

Governance Token

The roadmap clarifies that WLFI will serve as a governance token, enabling voting on decisions regarding the future development of the WLFI platform. These tokens will be non-transferable for the first 12 months. Even if the community votes to make the tokens transferable, this will only be implemented after a year. Governance features will be live immediately, regardless of their non-transferable status.

Future Plans for World Liberty Financial

World Liberty Financial is an upcoming crypto project led by co-founders Steve and Zach Witkoff, Folkman, and Chase Herro. The project aims to drive mass adoption of digital assets through a compliant one-stop platform for alternative finance.

The project promotes Donald Trump as Chief Crypto Advocate and his three sons as Web3 Ambassadors. Additionally, Luke Pearson, General Partner at Polychain Capital, serves as Head of Platform, while Corey Caplan, co-founder of Dolomite, is Head of Technical Strategy.

Phase 1: Aave on Ethereum Layer 2

The initial phase of World Liberty Financial is to launch a DeFi lending platform similar to Aave on the Ethereum Layer 2 network Scroll. This will allow users to lend and borrow tokens, starting with Bitcoin, Ether, and Stablecoins.

This phase has already begun, as the project requested a temperature check (the first step in a governance proposal) on a motion to deploy an instance of Aave V3. The platform intends to allocate 7% of its token supply to the Aave DAO—valued at $105 million at the projected valuation—for voting and liquidity provision, in addition to 20% of fees generated by its platform on an ongoing basis.

Phase 2: On-ramping Users

The second phase involves integrating with exchanges to allow users to on-ramp and off-ramp using on-chain attestations of know-your-customer protocols. The project also aims to create a stablecoin-focused credit card for spending tokens in real-world transactions.

Phase 3: Fractionalizing Assets

The final phase of the project involves fractionalizing real-world assets and acquiring regulatory licenses for this process. This could include assets such as hotels and sports clubs. Concurrently, the project seeks to establish a settlement platform for stablecoins.

World Liberty Financial is accessible to accredited investors in the U.S., qualified investors in the UK, and investors outside these countries. The project has criticized outdated policies and regulations in the U.S. regarding these restrictions.

The roadmap noted that it is subject to change. World Liberty Financial did not respond to a request for comment by publication time.

Update: Added estimated value of tokens allocated to Aave DAO.