As an analyst with extensive experience in the blockchain industry, I find myself intrigued by the token allocation strategy of World Liberty Financial (WLFI). Having served as an advisor to several early-stage projects, I have seen various strategies employed to ensure a project’s success. The 70% reservation of WLFI tokens for insiders, such as founders and team members, raises eyebrows within the crypto community due to its potential centralization and lack of transparency.
In simpler terms, a document titled “White Paper” made available by CoinDesk indicates that around three-quarters (70%) of the governance tokens for the World Liberty Financial project, known as WLFI, are set aside for internal parties such as founders, team members, and contractors
The white paper also shows that WLFI will not be transferable until there’s regulatory clarity for such tokens.
Token Allocation
Donald Trump, the ex-President of the United States, along with his sons, have vigorously advocated for World Liberty Financial, likening it as an innovative instrument in the financial sector and asserting that it could provide power to ordinary people. This platform has also been touted as a remedy to what the Trump family refers to as a “biased” conventional financial system
Even though the plan for distributing WLFI tokens seems promising, it’s sparked a wave of worry among members of the cryptocurrency community
As per the findings, the majority of the shares are intended to be managed by an exclusive circle of insiders, with approximately 70% earmarked for a broader public offering. Interestingly, a part of the proceeds from this public offering will also be reserved for project insiders, while the rest of the funds will be kept in a treasury to finance operations and other necessities
The tale suggests that when an advisor to startup ventures was queried regarding the 70% allocation for insiders, they found it amusing and referred to it as a “jest”
This particular allocation model varies significantly from those employed by significant blockchain initiatives like Ethereum and Cardano. For example, Ethereum’s Genesis block set aside approximately 16.6% of its Ether (ETH) for early contributors, while Cardano reserved around 20% of its ADA tokens. Contrastingly, Bitcoin‘s anonymous creator, Satoshi Nakamoto, is believed to control roughly 5% of the total supply
Nonetheless, it appears that World Liberty Financial is still in the process of defining its token distribution model (tokenomics), as their team works diligently to make necessary modifications
Tokens Will be Non-transferrable
Purchased WLFI tokens won’t allow for trading or transfer among users. This is done to prevent any possible breaches of securities laws
The document outlines that the items will remain permanently stored within a digital wallet or smart contract, potentially being released only if governed by procedures adhering to legal standards
Buyers will likewise be checked to make sure they’re not on restricted lists. However, it appears there has been an error in the document as it mentions FinCEN rather than the Office of Foreign Assets Control (OFAC)
Simultaneously, the project has been drawing undesirable interest from swindlers and cybercriminals. Lately, the accounts of Lara Trump, Eric Trump’s wife, and Tiffany Trump, Donald Trump’s youngest daughter, were infiltrated and manipulated to advertise a bogus crypto token under the guise of World Liberty Financial
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2024-09-06 01:30