World Liberty Financial (WLFI), a decentralized finance protocol co-founded by US President Donald Trump's family, initiated a community proposal to make the WLFI governance token transferable and tradable across the crypto ecosystem.
The proposal is part of the project's roadmap to transition to an “open participation” model by allowing the token to trade on secondary markets, including decentralized exchanges and peer-to-peer networks.
Currently, the WLFI token exists in a closed system and cannot trade outside the platform, limiting the governance pool and price discovery.
If the proposal is approved, WLFI tokenholders will be able to vote on token emissions, ecosystem incentives and treasury policy.
WLFI and Trump’s other crypto ventures have drawn scrutiny from Democratic lawmakers, some of whom say his crypto ties present a conflict of interest. Sufficiently decentralizing WLFI could relieve some of the Congressional pressure holding up comprehensive regulatory reform.
Related: Trump-backed World Liberty to release stablecoin audit, make WLFI transferable
Trump family cuts stake in WLFI as US President records windfall profits
The Trump family reduced its stake in WLFI by 20% in June, according to the platform. DT Marks DeFi LLC, the entity that manages the family’s investment in WLFI, initially had a 75% stake in the company. The family’s LLC has been reducing its stake in the platform since December.
The president reported a $57 million profit from WLFI in a June financial disclosure with the US Office of Government Ethics.
In total, Trump reportedly added $620 million to his net worth through his various crypto projects, including the Official Trump (TRUMP) memecoin, non-fungible token (NFT) sales, an ownership stake in WLFI, and capital appreciation of other digital assets held in his portfolio.
Cryptocurrencies account for approximately 9% of the president’s net worth of $6.4 billion, according to Bloomberg.
The windfall profits and the highly visible relationship with the crypto industry have led to proposed legislation aimed at limiting the president’s involvement with the industry.
Democratic Congressman Adam Schiff introduced the Curbing Officials’ Income and Nondisclosure (COIN) Act in June, which would limit the president, immediate family members and officials in the Executive Branch from issuing or promoting specific cryptocurrencies.
Magazine: Trump-Biden bet led to an obsession with ‘idiotic’ NFTs —Batsoupyum, NFT Collector
