World Liberty Financial has announced its development roadmap and expects to raise $300 million at a $1.5 billion valuation through a token sale next week.
Trump-linked DeFi project aims to raise $300 million in token sale next week
According to sources from TheBlock, World Liberty Financial (WLFI) - a DeFi project backed by the family of former U.S. President Donald Trump - has recently announced its development roadmap and stated its expectation to raise $300 million at a valuation of up to $1.5 billion through its first token sale next week.
The project's roadmap states, "The first token sale of WLFI is expected to raise $300 million, through the sale of 20% of the total token supply at a fully diluted valuation (FDV) of up to $1.5 billion".
During a livestream on 16/09, World Liberty Financial confirmed that it will issue a WLFI Governance Token and distribute it as follows: 63% sold to the public, 17% as liquidity rewards, and 20% retained for the project team. This means the token sale event next week will be the first, and there will be more token sales to come.
However, the WLFI token will primarily have a governance function, and will be "non-transferable" for the first 12 months (meaning it cannot be traded), but can be used for voting. There will also be a KYC (Know Your Customer) verification process for investors - one of the mechanisms to prevent the risk of being investigated by the U.S. Securities and Exchange Commission (SEC) for securities offering.
EXCLUSIVE: Trump-linked World Liberty Financial to raise $300 million at $1.5 billion valuation: Roadmap https://t.co/zCxQhzqOy7
— The Block (@TheBlock__) October 10, 2024
In the new roadmap, World Liberty Financial has outlined 3 specific development phases:
- Phase 1 (Ongoing): Launch a lending platform on Aave running on the Ethereum Layer-2 network Scroll, which will allow users to borrow or lend tokens such as ETH, WBTC, USDC, and USDT. As part of the process, the project has today opened a preliminary vote (temp check) - the first step in a governance proposal - on deploying an Aave V3 version. The platform will allocate 7% of its token supply to the Aave DAO for voting and liquidity provision, along with 20% of the fees generated from the platform. If approved, the project will move on to the community feedback stage, followed by testing and mainnet launch.
- Phase 2: Integrate with exchanges, allowing users to deposit/withdraw funds using on-chain certificates through a KYC process. World Liberty Financial plans to create a stablecoin-focused credit card, allowing people to use their tokens in the real world.
- Final Phase: Tokenize Real World Assets (RWA) and obtain management licenses for this (potentially including hotels and sports clubs). The project also hopes to establish a stablecoin clearing platform.
Although the project has close ties to the Trump family and the former President has often hinted at a bright future for the crypto industry if he is re-elected, this project has generated a lot of controversy. From suspicions about high-yield factors to allegations of hacked X accounts shilling fake DeFi projects.
On the other hand, many people have expressed hope that the project could bring attention to DeFi, an area that most Americans are still unfamiliar with. The fact is, despite over $57 billion being staked on the three largest blockchains - Ethereum, Solana, and TRON - DeFi still lacks real-world users.
Marc Zeller, the founder of the Aave Chain Initiative, commented that WLF has the potential to bring DeFi to new audiences. An Aave user named EzR3aL also expressed curiosity about the project and how new users might join the Aave platform.
Compiled by Coin68
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