Trump’s Crypto Venture, World Liberty Financial, Unveils Controversial Revenue-Sharing Plan
Donald Trump’s foray into the cryptocurrency world with his project, World Liberty Financial (WLF), has taken a controversial turn. A newly released 13-page document, dubbed the "World Liberty Gold Paper," details a revenue-sharing plan that allocates a significant portion – 75% – of net protocol revenue to Trump and his family. This revelation comes amidst a fiercely contested presidential election and overshadowed the less-than-stellar launch of the project’s token, $WLFI. While the project aims to establish itself as a crypto bank, offering borrowing, lending, and investment services, the disproportionate share of profits earmarked for the Trump family raises significant concerns about transparency and potential conflicts of interest.
Key Takeaways:
- Massive Revenue Share for the Trump Family: The World Liberty Gold Paper reveals that the Trump family is poised to receive a staggering 75% of WLF’s net revenue, amounting to 22.5 billion $WLFI tokens, initially valued at $337.5 million.
- Underwhelming Token Sale: Despite aiming for a $300 million raise at a $1.5 billion valuation, the initial token sale yielded a mere $12.9 million.
- Disclaimers and Lack of Liability: The document explicitly states that the Trumps assume no liability for WLF’s operations and asserts that the project is "not political and has no affiliation with any political campaign."
- Complex Ownership Structure: The revenue distribution involves multiple LLCs, including one affiliated with Trump’s close friend and donor, Steve Witkoff, highlighting a complex web of relationships underpinning the project.
- Ambiguous Token Allocation: While the paper specifies anticipated token distribution amongst different categories (token sale, community growth, etc.), it remains unclear which category includes the Trump family’s massive allocation.
World Liberty Financial: A Closer Look at the Crypto Project
The "World Liberty Gold Paper" lays out WLF’s vision of a decentralized finance (DeFi) platform offering various services like borrowing, lending, and investing in digital assets. It paints a picture of a user-friendly crypto bank aimed at broadening access to financial services within the digital economy. However, the document’s central focus, and what has garnered the most attention, is the dramatically imbalanced revenue-sharing agreement.
Unconventional Revenue Distribution
The document meticulously details how net protocol revenue—defined as income from various sources, including platform fees, token sales, and advertising, after deducting expenses—will be distributed. A full 75% is destined for DT Marks DEFI LLC, a Delaware-based company linked to former President Trump. The remaining 25% is allocated to Axiom Management Group (AMG), led by co-founders Chase Herro and Zachary Folkman.
Further complicating the structure is AMG’s agreement to share half of its revenue share with WC Digital Fi, an entity affiliated with Steve Witkoff and his family— close associates of the Trump family adding another layer of interconnectedness to the project. This intricate arrangement raises questions about the actual ownership and control structure of WLF and further diminishes the notion of a truly decentralized platform.
Token Allocation and Market Performance
The Gold Paper also lays out the anticipated token allocation: 35% for the token sale, 32.5% for community growth and incentives, 30% for initial support allocation, and 2.5% for the team and advisors. However, the absence of a clear indication of where the vast majority of the already distributed $WLFI tokens went for the Trump family leaves a significant information gap regarding project transparency in relation to token distribution.
The initial token sale’s disappointing performance, generating only $12.9 million compared to the ambitious $300 million target, underscores the challenges facing WLF. This shortfall, coupled with the disclosed revenue-sharing plan, is raising serious doubts among potential investors and observers alike.
The Political Implications and Potential Conflicts of Interest
The timing of the Gold Paper’s release, in the midst of a tightly contested presidential election, adds another layer of complexity. While the document explicitly states the project’s non-political nature and absence of any campaign affiliations, the sheer scale of the financial stake held by the Trump family is undeniable. This creates a significant potential for conflicts of interest, especially if WLF’s success or future ventures become linked to any political or regulatory landscape changes.
Transparency Concerns
The lack of clarity concerning the allocation of tokens to the Trump family fuels concerns about transparency. The document’s claim of no liability further exacerbates these concerns, suggesting a potential separation of ownership and operational risks. While such structures are not uncommon in the DeFi world, the sheer amount of revenue assigned to the Trump family makes the situation unique.
The lack of immediate response from WLF or the Trump campaign to requests for clarification only compounds these issues. This absence of engagement leaves many questions unanswered, creating additional concern about the integrity and sustainability of the initiative.
The Team Behind World Liberty Financial
The Gold Paper also sheds light on the individuals behind WLF. While Donald Trump is highlighted as the "chief crypto advocate" and his sons are designated "Web3 ambassadors," the core development and management appear centered around the co-founders Chase Herro and Zachary Folkman and their associated entities.
Herro and Folkman’s past experiences, most notably within the crypto sphere with projects like Dough Finance and Pacer Capital, indicate some level of familiarity with the complexities of the digital currency landscape. However, these projects lack extensive track records, not allowing for further evaluation or vetting. The involvement of Steve Witkoff and his family further complicates the existing organizational and ownership model.
The Role of Steve Witkoff
The inclusion of an affiliate of Steve Witkoff, a long-time Trump associate, and his family in the revenue-sharing agreement raises more transparency issues. The nature of this relationship and the extent of Witkoff’s involvement in WLF’s overall operations and strategy remain unclear. This situation is further muddied by the lack of clarity or transparency given to investors in relation to the distribution of revenue.
Conclusion: A Controversial Launch and Unanswered Questions
The unveiling of the World Liberty Gold Paper has cast a long shadow over WLF’s launch. The highly unbalanced revenue-sharing agreement, the underperforming token sale, and the lack of transparency surrounding the project’s structure and ownership invite severe scrutiny. As the project struggles to meet its initial financial goals, the questions surrounding its long-term viability and the ethical implications of its unique structure will need to be addressed openly and transparently. The controversy surrounding WLF underscores the increasing need for greater regulatory oversight and rigorous transparency measures within the rapidly growing DeFi space. The future success of WLF, in light of all the recent information, remains questionable. The project could possibly be further damaged by its perceived lack of transparency and the ongoing investigation which is currently being conducted by the relevant authorities.
