The Trump family's involvement in a new cryptocurrency venture, World Liberty Financial (WLF), is poised to generate significant revenue, with 75% of the net protocol earnings flowing to a company linked to the former U.S. president. According to a recently published document, the Trump family is set to receive this hefty share while assuming no liability for the venture's operations.
World Liberty Financial, launched earlier this year, detailed its business model in a 13-page document known as the "World Liberty Gold Paper." The paper outlines how tokens will be distributed and reveals that Donald Trump, along with his family, will receive approximately 22.5 billion WLFI tokens, currently valued at $337.5 million based on the launch price of 1.5 cents per token. The tokens are part of a broader strategy to raise $300 million at a $1.5 billion valuation during the initial token sale.
However, despite the ambitious target, WLF has only managed to sell $12.9 million worth of tokens as of Thursday, according to data on the platform's website.
A key feature of the venture is that the Trump family, despite its prominent role, bears no legal liability. The document clearly states that neither Donald Trump nor his family members are directors, employees, managers, or operators of WLF or any related entities. The project also distances itself from political affiliation, emphasizing that neither the platform nor its tokens are associated with any political campaign.
"The Trump family will not be liable for any aspect of WLF's operations, and the project is entirely non-political," the paper clarified. The Trump Organization and the campaign for the former president declined to comment on the venture.
World Liberty Financial positions itself as a "crypto bank" where users can borrow, lend, and invest in various digital coins. According to the document, the platform will earn revenue through multiple channels, including platform usage fees, token sales, and advertising revenue, which will collectively form the net protocol revenue. After deducting operational costs, 75% of the remaining profits are earmarked for DT Marks DEFI LLC, a Delaware-based company with connections to Trump.
The remaining 25% of net protocol revenue will be directed to Axiom Management Group (AMG), a Puerto Rican firm co-founded by Chase Herro and Zachary Folkman. AMG has agreed to allocate half of its revenue rights to WC Digital Fi, an entity tied to real estate mogul Steve Witkoff, a close ally and political donor to Trump. Witkoff's son, Zachary, is also listed as one of the co-founders of the project.
The document outlined how WLF plans to allocate its token supply. Roughly 35% of the total token supply is set aside for public sale, while 32.5% will be used for community incentives and growth. Another 30% will support initial project operations, and 2.5% will be reserved for the founding team and advisors, though specific details on which portions include the Trump family remain unclear.
Despite these allocations, the paper also notes that the token distribution could be subject to change, adding an element of uncertainty to the platform's future structure. Folkman, one of the co-founders, had previously stated that only 20% of WLF tokens would be allocated to the founding team, a group that includes members of the Trump family.
The timing of the venture's launch has raised some eyebrows within the crypto community, given the broader regulatory landscape in the U.S. The Trump family's foray into cryptocurrency comes at a time when the industry is grappling with increased scrutiny from the Biden administration and Securities and Exchange Commission (SEC) Chair Gary Gensler. The SEC has ramped up enforcement against crypto projects, raising concerns among industry leaders about regulatory overreach.
In contrast to regulatory pressure, World Liberty Financial seeks to offer an alternative space for investors, presenting itself as an opportunity in the decentralized finance (DeFi) space. The project's launch of the WLFI token, while still early, signals an ambitious attempt to raise capital and gain a foothold in the increasingly competitive crypto market.
The project also features key figures from the crypto world. Herro, who co-founded AMG, previously launched Dough Finance, a crypto project, and operated a now-defunct trading business called Pacer Capital. Folkman, another co-founder, was involved in the controversial "Date Hotter Girls" project and has a history in crypto ventures.
Despite the notable names and connections, World Liberty Financial has faced challenges in its initial token sale, selling only 4% of its tokens so far. The project will need to build momentum in the coming months to meet its ambitious $300 million goal and secure a lasting place in the crypto sector.
