World Liberty Financial (WLFI), a decentralized finance (DeFi) protocol with ties to the Trump family, has introduced a proposal to make its WLFI token transferable and tradable across the cryptocurrency ecosystem. This move signifies a major step towards decentralization and broader community participation. The proposal, initiated on July 4, 2025, aims to transition the token from a closed protocol to open community access, enabling peer-to-peer transfers and secondary market trading.
Currently, the WLFI token exists within a closed system, which restricts trading outside the platform, limits the governance pool, and hinders price discovery. If the community approves the proposal, WLFI token holders will gain the ability to vote on token emissions, ecosystem incentives, and treasury policies. This transition aims to align long-term token incentives with protocol adoption and overall success.
The governance proposal will be put to a vote by token holders, who will decide whether to approve or reject the shift to tradability. A "yes" vote would activate transferability and initiate the unlocking of tokens for select early supporters. Conversely, a "no" vote would maintain the current closed-network model, keeping tokens non-transferable.
The proposal outlines that a portion of the WLFI supply, previously sold to early supporters, will be eligible for unlocking upon the activation of transferability. The remaining tokens will be subject to a second community vote to determine the unlocking and release schedule. Tokens allocated to founders, team members, and advisors will initially remain locked and will have a longer unlocking timeline compared to early supporters. This demonstrates a commitment to protocol stability and long-term growth. The specific timing and eligibility criteria for unlocking will be determined later.
Analysts suggest that early unlocking could influence WLFI's price action once tradability begins. Since no tokens are currently transferable, the introduction to public markets could drive initial volatility. Increased accessibility might also raise the token's profile across the broader crypto market.
The timing of this proposal coincides with the expected mid-July vote on the GENIUS Act in the U.S. House. If passed, this legislation would legalize stablecoins at the federal level, providing a regulatory framework for broader adoption. This could attract institutional interest and strengthen market infrastructure, aligning with a larger industry shift towards regulatory clarity and increased adoption. The WLFI team appears to be positioning the token for exposure should the GENIUS Act pass, potentially benefiting from the regulatory environment and increased market interest.
World Liberty Financial reportedly sold 35 billion WLFI tokens to early investors for a combined $550 million between October and March, making it one of the crypto projects that raised the most money in the first half of 2025. 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.
If the proposal is approved, it will enable the execution and realization of transferability, initiate distribution to eligible early supporters, and commence community governance through a second vote on the remaining unlocks. Additionally, the plan includes continued ecosystem expansion and integration of partners. This move underscores the WLFI team's strategic positioning in anticipation of potential regulatory changes and market opportunities.
