Donald Trump-funded World Liberty Financial has garnered over 100,000 registrations before its Ethereum-based governance token, WLFI, which is set to launch on October 15.
The platform designed as a decentralized finance (DeFi) aims at providing various functions such as borrowing, lending based on cryptocurrencies, and transaction in stablecoins.
During a recent virtual debate on X, Zak Folkman, the head of operations in the platform launched for the project, and its members Chase Herro and Zach Witkoff sought to remind the audience of the project's essential aspects.
WLFI is an ERC-20 token that will act as the governance token of the platform, where token holders will be able to vote in decisions. Folkman states that 63% of the tokens will be sold to the general public from the whitelist, 17% for user incentives, and 20% for the team.
WLFI token holders will be able to participate in the platform's governance at the time of WLFI token distribution, while the WLFI tokens will be nontransferable for the first 12 months after distribution. According to the governance structure, the users will be allowed to vote when the platform makes decisions, which makes it decentralized.
WLF’s platform will enable users to interact with liquidity pools and provide borrowing and lending of cryptocurrencies. It is launching as an instance of Aave, the well-known decentralized lending protocol, and then plans to transition to the Ethereum layer-2 platform, Scroll. Stani Kulechov, Aave’s CEO, endorsed the project, stating that it fits his platform’s borrowing and lending connections.
According to the SEC announcement, the platform will be limited to only qualified investors in the United States. These individuals require certain annual income thresholds of about $200,000 and asset possession of about $1 million. This requirement ensures the company's legal compliance by adhering to U.S. securities regulations while restricting access to a particular category of investors.
Rich Teo, Paxos's co-founder and chief architect, has joined World Liberty Financial and will lead the department dealing with stablecoins and payment solutions. His experience will strengthen the project’s capacities in these areas, enabling it to compete for a share in the growing DeFi market.