A newly released document sheds light on the financial structure of World Liberty Financial (WLF), a crypto project closely tied to former U.S. President Donald Trump. According to the 13-page document, which WLF calls the “World Liberty Gold Paper,” the Trump family is set to receive 75% of the net protocol revenues from the project, while assuming no liability for its operations. This revelation highlights the unique positioning of Trump’s crypto venture as it seeks to raise substantial funds amid his 2024 presidential campaign.
World Liberty Financial: Trump’s Bold Crypto Venture
World Liberty Financial is Donald Trump’s foray into the burgeoning world of decentralized finance (DeFi). The project, initially branded as “The DeFiant Ones,” recently launched its own cryptocurrency, the WLFI token, in an effort to raise $300 million at a $1.5 billion valuation. As of this week, only $12.9 million worth of tokens have been sold, according to WLF’s official website.
The project aims to establish itself as a crypto bank, encouraging customers to borrow, lend, and invest in digital assets. WLF positions itself as a decentralized finance hub, promising to integrate various DeFi services, such as lending protocols, trading, and staking.
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Trump Family’s Financial Stake: 75% of Revenue with No Liability
The document reveals that a Delaware-based entity, DT Marks DEFI LLC, which is connected to Trump, will receive a whopping 75% of the project’s net protocol revenue. This revenue comes from a range of sources, including platform fees, token sales, advertising, and other revenue streams after deducting operational costs. The paper also makes it clear that the Trump family assumes no operational responsibility for the project. They are neither directors nor employees, effectively distancing themselves from the day-to-day management of WLF.
Despite the significant financial stake, the project emphasizes that WLF and its tokens are not political and bear no direct affiliation with Trump’s ongoing presidential campaign. However, the timing and the public nature of the initiative suggest a significant overlap between Trump’s business ventures and his political ambitions.
Key Players and Co-Founders
In addition to the Trump family, other notable figures have financial interests in WLF. The remaining 25% of the protocol revenue is allocated to Axiom Management Group (AMG), a Puerto Rico-based company wholly owned by project co-founders Chase Herro and Zachary Folkman. AMG, in turn, has agreed to share half of its revenue rights with another LLC, WC Digital Fi, linked to Trump’s longtime friend and political donor Steve Witkoff and his family.
Herro and Folkman have a long history in the crypto space. Folkman, who previously founded a company called Date Hotter Girls, has helped develop several crypto ventures, including Dough Finance. Herro has been involved in the crypto sector for over a decade, launching Pacer Capital, a now-defunct trading business. Their combined experience adds an intriguing layer to the project’s leadership.
Token Allocation Breakdown
The “World Liberty Gold Paper” outlines the anticipated breakdown of the WLFI token distribution, but with an important caveat: these numbers are subject to change. Here’s how the current distribution is expected to look:
- 35% of the total supply is allocated to the token sale, providing the main source of capital for the project.
- 32.5% will go toward community growth and incentives, aimed at expanding user adoption and market reach.
- 30% will be designated for initial support allocation, which covers a range of operational costs, reserves, and other startup needs.
- 2.5% is earmarked for the founding team and advisors, which includes the Trump family and other project co-founders.
Interestingly, the fine print leaves room for flexibility, meaning that the exact allocations to the Trump family and other players could still shift as the project evolves.
Trump’s Role: The “Chief Crypto Advocate”
The document refers to Donald Trump as the “chief crypto advocate”, a role that aligns with his vocal support for the project. His three sons are described as “Web3 ambassadors,” showcasing the family’s deep involvement in promoting blockchain and crypto initiatives. Despite their prominent roles in promoting WLF, the document reiterates that none of the Trumps are directly involved in managing the day-to-day operations of the company.
Financial Ambitions and Challenges
While WLF’s roadmap aims to raise $300 million in its initial sale, the project has yet to gain significant traction in the market, with only $12.9 million in token sales reported so far. This falls short of expectations, and it remains to be seen whether the Trump family’s involvement will be enough to drive interest and attract more investors.
Furthermore, the document specifies that $30 million of the initial revenue will be held in reserve to cover operating expenses and future financial obligations, ensuring the project’s sustainability. However, questions remain about whether WLF can meet its ambitious fundraising goals, especially with the crypto market’s unpredictable nature.
A Crypto Project Shaped by Trump’s Political and Financial Ambitions
World Liberty Financial represents an intriguing intersection of cryptocurrency, finance, and politics. The Trump family’s significant financial stake in the project, coupled with their lack of liability, creates a unique dynamic that is likely to draw both attention and scrutiny. As the project seeks to establish itself in the competitive DeFi landscape, it will need to overcome early fundraising challenges and prove its value to investors.
With the 2024 presidential election looming and Trump’s role as both a political and business figure continuing to evolve, the future of WLF will be closely watched as a potential case study in how crypto and politics can merge in unprecedented ways.
