The WLFI token project of World Liberty Financial is a cryptocurrency plan endorsed by the Trump family. According to its golden book content, the project claims to establish a decentralized finance (DeFi) platform based in the United States, aiming to maintain the dollar's status as the global reserve currency while embracing the freedom of decentralized assets. Below is an in-depth analysis of the economic model of this project.
1. Token Use and Governance
The main function of the WLFI token is governance rights; holders can vote on protocol-related matters through the WLF governance platform. It is worth noting that:
The WLFI token currently does not provide any financial returns or dividends and serves solely as a governance tool for the WLF protocol (I believe this clause is mainly to avoid regulation; it may change at any time if regulations are modified).
The total supply of tokens is 100 billion.
The voting rights of any wallet are limited to within 5% of the total available voting token supply to avoid excessive concentration of power.
The tokens will initially be non-transferable until unlocked through the protocol governance process, and the unlocking method must comply with relevant laws. Therefore, the direct unlocking proposed by the community without voting is almost impossible; the proposal and voting process itself is to avoid legal risks.
2. Token Distribution Structure
The expected token distribution proposed in the golden book is as follows:
35%: Distributed to eligible participants through token sales
32.5%: Community Growth and Incentives, used to expand participation in WLF community governance and build the protocol
30%: Initial Supporter Allocation
2.5%: Team and Advisors
3. Known Token Distribution Status
a. According to the publicly available data, the confirmed allocated tokens are divided into early supporters and token sales, which is the 30% and 35% mentioned above. Among the early supporters, Trump and his affiliated companies account for 22.5 billion, and the remaining 7.5 billion has not been disclosed. The token sales account for 35%, which I detailed in a previous post; public data shows that about 26.05 billion has been completed, meaning about 9 billion remains unfinished or undisclosed. How to handle this portion of tokens is likely to be announced gradually in the future, and the undistributed tokens will most likely be decided through community voting (Airdrop or burn?).
b. According to the latest token unlocking proposal, founders, teams, and advisors are all locked in the initial stage and will have longer lock-up periods and unlocking times than early supporters. It is important to note that the early supporters referred to here are not the early supporters mentioned in the golden book (the proposal explicitly states that 'some WLFI has been sold to early supporters'), so I believe that the early supporters referred to in this proposal are the token sales part mentioned in the golden book (including institutions and all retail investors participating in the pre-sale). Trump and his three sons have all been changed to founders on the official website, and the 22.5 billion allocated to him will be locked in initially. The 2.9 billion tokens obtained due to his advisory role will also be locked.
4. Summary
According to the golden book, we can temporarily clarify the overall token allocation model and predict the approximate circulation quantity after listing. Only the portion of the token sales completed (about 23.15 billion) will be partially unlocked and circulated. If the unlock ratio is 50%, the initial circulation will be about 11.6 billion tokens. Based on my previous prediction of entering the top ten in market capitalization, exceeding #ADA 's forecast, the price after listing will not be lower than 2 USD. If extreme FOMO sentiment arises, the price may be even higher, reaching up to 10 USD.
What do the big shots think? We can discuss together.
