World Liberty Financial (WLFI) Faces Controversy Over Pushing Through USD1 Growth Governance

JH Kim

Summary

World Liberty Financial (WLFI) reported that controversy has emerged after it passed USD1 growth governance while tokenholder voting was constrained.
It reported that in the recent governance vote, the top nine addresses linked to the team exercised about 59% of total voting power, while participation by locked-up token holders remained limited.
According to the WLFI white paper, 75% of the protocol’s net profit is allocated to entities affiliated with the Trump family and 25% to entities affiliated with the Witkoff family, and WLFI said it has applied for a banking license.

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World Liberty Financial (WLFI) has sparked controversy after passing governance related to the growth of the USD1 stablecoin while tokenholder voting was constrained.

According to Cointelegraph, a digital asset (cryptocurrency) news outlet, WLFI’s recent governance vote showed that the top nine addresses linked to the team exercised about 59% of total voting power. During the process, effective participation by holders of locked-up tokens was reportedly limited.

According to the WLFI white paper, tokenholders are not granted rights to distributions from protocol revenue, and the structure is designed so that 75% of the protocol’s net profit is allocated to entities affiliated with the Trump family, with the remaining 25% allocated to entities affiliated with the Witkoff family.

Meanwhile, WLFI has previously applied for a banking license and continues moves to build a structure that manages issuance, custody, and exchange of USD1 end to end.

WLFI