As the US election approaches, the crypto project World Liberty Financial (WLFI) launched by the Trump family has attracted widespread attention and doubts. In particular, the draft white paper recently disclosed by CoinDesk shows that the unreasonable token distribution and centralized governance structure run counter to the project's concept of "empowering the people."
Author: Fu Heshuo, Odaily Planet Daily. Ported by: Bosen Quantitative Consultant Xiao Sun (bosen0722)
Unreasonable token distribution and internal interest monopoly
According to the disclosure, 70% of the governance token WLFI in the World Liberty Financial project will be allocated to the founding team and related stakeholders, and only 30% will be publicly sold. This distribution structure has been criticized as being heavily biased towards internal interests and contrary to the principle of decentralized governance. In addition, WLFI tokens cannot be publicly traded in the short term, which further limits the interests of investors and may trigger regulatory risks from the US SEC.
Safety hazards and governance doubts
The technical basis of this project is Aave, a lending platform based on Ethereum, but most of the team members are from Dough Finance, which was recently hacked, and the security is worrying. In particular, vulnerabilities in the Dough Finance code were exploited by hackers, resulting in millions of dollars in losses. Therefore, the outside world is full of doubts about whether World Liberty Financial will face similar risks.
Trump Family Involvement and Team Background
Members of the Trump family hold important positions in the project. Trump himself is known as the "chief cryptocurrency advocate," and his sons also hold Web3 and DeFi-related positions. In addition, most of the other core members of the project come from real estate or non-crypto industries, lack professional backgrounds, and nepotism is very obvious.
Project response and future challenges
Although CoinDesk's report has sparked widespread controversy, World Liberty Financial only responded to security issues and did not explain key issues such as token distribution. The project claims to be working with several top security companies to ensure the security of the platform, and plans to promote DeFi and stablecoin applications through cooperation with Aave. However, some of the Trump family's previous social accounts have been used by hackers to commit fraud, which has also caused more concerns about its security.
Summarize
Although World Liberty Financial emphasizes innovation and security, internal governance, token distribution issues, and the professionalism of project members are still the focus of external doubts. It will take time to verify whether the project can get rid of the controversy and win the trust of the market in the future.
What should ordinary people do?
[No investment and financial advice, the cryptocurrency world is risky, so be careful when investing!
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