Trump-Backed WLFI Token Nears Tradability with 99% Vote in Favor

World Liberty Financial (WLFI), a DeFi platform associated with U.S. President Donald Trump and his family, has initiated a community vote to determine whether its native governance token, WLFI, should become tradable on secondary markets. The proposal aims to transition the token from its current non-transferable status to one that allows broader market participation.

As of July 10, over 99% of participating token holders have voted in favor of the proposal, with approximately six billion tokens cast. If approved, the change would enable WLFI tokens to be traded outside the platform's ecosystem, enhancing liquidity and potentially increasing the token's utility.

The WLFI token was initially designed as a non-transferable governance token, granting holders voting rights on platform decisions but restricting trading capabilities. This structure was intended to comply with regulatory considerations and to focus on community-driven governance. However, the lack of tradability became a point of contention among investors and users seeking more flexibility and potential financial returns, leading to a governance vote on the matter.

In response to community feedback, WLFI's leadership proposed the shift to a tradable token model. The proposal includes provisions to prevent immediate sell-offs by insiders; tokens held by founders, team members, and advisors, including those held by the Trump family, would remain locked for a longer period. This measure aims to align the interests of early stakeholders with the platform's long-term success.

The proposal has also raised questions about WLFI’s regulatory classification. While the token has so far been positioned as a non-transferable governance instrument, enabling trading could draw additional scrutiny from U.S. regulators, particularly the SEC. Given the high-profile involvement of President Trump and his family, converting WLFI into a tradable asset may require more robust compliance measures to avoid potential legal challenges.

Since its launch in September 2024, World Liberty Financial has raised approximately $550 million through two public token sales. Notable investors include Tron founder Justin Sun, who invested $75 million, and the Aqua1 Foundation, which purchased $100 million worth of WLFI tokens.

President Trump has disclosed holding 15.75 billion WLFI tokens, with reported income of $57.4 million from the project. While the Trump family's involvement has attracted attention and investment, it has also raised concerns about potential conflicts of interest, especially as the administration considers policies affecting the cryptocurrency industry.

Market observers are already speculating about the token's potential valuation if it becomes tradable. WLFI’s large existing supply and concentrated ownership structure could lead to high initial volatility. However, some see the move as a strategic one to open the door to institutional listings, particularly on exchanges with looser requirements outside the U.S.

The proposed shift to a tradable token model reflects a broader trend in the DeFi sector toward increased liquidity and market participation. If approved, the change could position WLFI more competitively within the DeFi landscape, offering users both governance rights and the ability to trade tokens on secondary markets.