Trump’s WLFI Token Launch Sparks DeFi Governance Debate
On September 1, 2025, 65.5 billion WLFI tokens—equivalent to 6.55% of the total token supply—were transferred to the WLFI Lockbox contract. This marked the first unlock of the token for trading and transfer, following a presale that raised between $550 million and $2.26 billion in October 2024. The WLFI Lockbox, an audited Ethereum-based smart contract, was deployed on August 25, 2025, allowing presale participants to activate their accounts and prepare for the initial token claim [1].
The token unlock is part of a broader structure where early backers who purchased WLFI in the $0.015 and $0.05 rounds received 20% of their allocation on September 1. The remaining 80% of tokens will be subject to future governance votes, giving token holders a say in the release schedule. Notably, tokens held by founders, advisors, partners, and team members will not be unlocked in this phase [2]. This initial unlock was made possible through the WLFI Lockbox, which users had to activate by transferring their tokens into the contract. Upon activation, wallet balances temporarily showed zero, a design choice explained by WLFI as an expected system feature [3].
The token’s market valuation is already being anticipated by futures markets, where WLFI is priced between $0.40 and $0.42, implying a fully diluted valuation of over $40 billion [3]. The token’s debut on Ethereum-based decentralized exchanges such as Uniswap, alongside potential listings on major centralized exchanges like Binance and OKX, signals a significant expansion of liquidity for WLFI. Futures trading on platforms like Hyperliquid has already drawn substantial attention, with traders using leveraged positions to speculate on WLFI’s price before its official launch. Hyperliquid’s 3× leveraged WLFI-USD perpetual contracts enabled traders to gain exposure without owning the token, with some positions involving millions of dollars in collateral [1].
The launch of WLFI also coincides with broader developments in the project’s ecosystem, including the USD1 stablecoin, which was recently listed on Coinbase and other platforms. USD1 is designed to be pegged to the U.S. dollar and backed by Treasuries, supporting lending, payments, and cross-chain liquidity [1]. The Trump family’s involvement in the project has drawn both attention and scrutiny. Eric Trump and Donald Trump Jr. were named Web3 Ambassadors, and the Trump family retained significant control over early proceeds, with 75% of the presale funds flowing to affiliated entities such as WLF Holdco LLC. This concentration of control raises questions about the project’s decentralization and governance transparency [1].
The political and regulatory environment surrounding WLFI remains a key factor in its trajectory. Critics have pointed to potential conflicts of interest, especially after the passage of the GENIUS Act, which could influence how politically tied crypto projects are regulated. The Trump family’s involvement also presents reputational and institutional risks, as it may alienate traditional DeFi users and institutional investors [1]. Despite these challenges, WLFI’s governance model includes community voting, with a recent vote approving the token’s tradability by 99.94%. This model is intended to align with DeFi’s ethos of decentralized decision-making [3].
As WLFI moves into a new phase as a tradable and transferable asset, the project’s success will depend on its ability to balance political ties with decentralization, manage token distribution fairly, and navigate regulatory scrutiny. The initial unlock on September 1 represents a pivotal moment, as it transitions WLFI from a governance token to a liquid asset with potential market influence.
Source: [1] Trump Family’s World Liberty Financial (WLFI) Token Finally Launches on Ethereum (https://finance.yahoo.com/news/trump-family-world-liberty-financial-103246995.html)
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