Last week, World Liberty Financial (WLFI) holders overwhelmingly voted to unlock tokens for trading. The Trump Family-linked project specified that the token will become tradable in 6-8 weeks. The move now allows these governance tokens, which were originally non-transferable, to become tradable through peer-to-peer transactions and on secondary markets.
Erwin Voloder, Head of Policy at the European Blockchain Association, explained that while this move allows for wider participation, capital concentration could undermine decentralization. This is especially worrying as the Trump family controls 40% of the total supply, and major players like Justin Sun and Aqua 1 Foundation have already invested millions in the token.
WLFI Now Open for Trading
This week, WLFI holders overwhelmingly voted to unlock tokens for trading. Previously, these tokens only granted voting rights, but they will now be sold for anyone to hold.
While trading is now permitted, the unlock will occur in stages. Initially, only a portion of the tokens sold to early supporters will be eligible for trading.
The remaining ones, including those held by founders, advisors, and the team behind WLFI, will be subject to a second vote to determine their unlock and release schedule.
With tradability, the platform can expect to achieve price discovery and market-driven distribution of governance power. The move will lead to increased liquidity within the platform and higher levels of user engagement.
“This enables broader participation as it lowers the barrier to entry for new token holders and investors who may want a say in governance. The other side is having tradable tokens drawing investor interest and capital, which can help fund development and expansion,” Voloder told BeInCrypto.
Though the token unlock lowers the barrier to entry for new token holders, it still raises the question of who will buy it, and with what intention.
Why the wait? We’re forging powerhouse deals that could reshape $WLFI ’s future, prepping for epic listings on major platforms, and crafting fair unlock schedules. This isn’t delay — it’s building legend.
— WLFI (@worldlibertyfi) July 18, 2025
The Trump Factor in WLFI Governance
The words WLFI and Trump have become inseparable, at least among crypto connoisseurs. Such a connection is hardly surprising.
President Trump personally holds 15.75 billion governance tokens, while his family’s affiliated entities reportedly control about 40% of the total supply, down from an initial 75% in December 2024.
Even with WLFI tokens now tradable, the Trump family maintains considerable control over governance decisions through their substantial token holdings. This direct influence will remain intact until the second stage of the unlock schedule. However, the indirect influence the President holds over the project will be hard to eliminate.
“In crypto markets the ideals of decentralization often clash with the realities of capital concentration and brand-driven influence. WLFI isn’t unique in that regard when you look at the supply, distribution, and influence, but is unique in the sense that the project is in the orbit of a sitting US president,” Voloder said.
Beyond direct ownership, WLFI’s association with the Trump family is also a major draw for investors.
Is the Token Unlock a Win for Whales?
While the WLFI token unlock promotes broader participation, it ironically exposes it to centralization. Most notably, it attracts accumulation from whales and institutional influence.
Besides the pre-existing concentration of power from the Trump family, wealthy investors have already expressed interest in the token.
In January, Justin Sun increased an initial investment of $30 million in the token to $75 million. In April, Abu Dhabi-based crypto trading firm DWF Labs announced it had bought $25 million worth of the tokens.
Just last month, Aqua 1 Foundation, also based in the United Arab Emirates, announced its purchase of $100 million worth of tokens. The foundation has already received scrutiny around its origins and opaque nature, intensifying concerns over the owner’s intentions for the token’s governance.
According to Voloder, tradability can easily lead to the concentration of governance power in wealthy actors who accumulate tokens on secondary markets.
“A common phenomenon that can be observed in crypto markets is how this concentration often leads to plutocracy where ‘one token one vote’ decision making gets dictated by token wealth rather than egalitarian participation. This dynamic is exacerbated when founding entities or early investors already hold substantial supplies, allowing them to dominate votes even without transparent coordination,” he said.
Now that the WLFI token is officially tradable, more wealthy investors will likely jump on the opportunity.
The Path to Egalitarian Governance
While no high-profile individuals have publicly declared their intentions to purchase WLFI tokens since the recent unlock, these governance tokens will probably continue attracting these investors.
“Given the existing interest from high-net-worth individuals and entities, further consolidation among large investors is likely, at least in the short term. The Trump family’s retained voting rights and indirect influence could also deter retail governance participation,” Voloder said.
Creating a more just system of token unlocks in the current context requires the very entity to take matters into its own hands. Unless WLFI implements governance mechanisms such as quadratic voting or limits on token holdings per wallet, whales will continue to gain disproportionate influence.
However, certain solutions that the broader Web3 community can take to make decentralized governance truly democratic have started to emerge.
Strategies like anti-sybil mechanisms, more progressive voting schemes, reputation-based models, and community treasuries have emerged as worthy alternatives.
“The reality is these efforts take time, and in the short-medium term, the narrative economics and incentives to accumulate wealth at the expense of others are still a playbook many actors subscribe to. It’s important to resist plutocracy, especially when celebrities or geopolitical capital flows play a central role,” Voloder concluded.
Working towards a better future in any scenario requires comprehending the mechanisms in place today that offset a system originally designed to be egalitarian.
The Paradox of Openness and Power
WLFI’s recent token unlock represents a defining dilemma of the Web3 era: the promise of open participation against the gravitational pull of concentrated wealth.
The project will serve as a crucial test case as the market begins to determine WLFI’s value and distribute its governance power. Its trajectory will reveal whether decentralized ideals can thrive amidst significant celebrity endorsement and substantial institutional capital flows.
The coming phases will ultimately reveal if WLFI can transcend traditional power structures or if it will simply mirror the plutocratic tendencies the broader Web3 community strives to overcome.
The post The World Liberty Financial Paradox: Inside The Risks of WLFI Token Tradability appeared first on BeInCrypto.
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