Trump’s Global Liberty Finance Initiative Leaves Investors Facing Difficult Choices

Trump Family Crypto Project Faces New Scrutiny

The Trump family’s main cryptocurrency initiative is once again under examination as questions arise about its governance and investor rights.

Controversial Proposal Alters Investor Voting Power

World Liberty Financial, which previously raised over $550 million by promising early token holders a say in the project’s direction, has introduced a plan that could diminish the influence of these investors on crucial decisions—including when they can access most of their funds. To retain some voting rights, holders must surrender the only tokens they are currently able to sell.

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Staking Requirement for Voting Rights

The new plan targets the approximately 20% of tokens that are currently tradable. Unless holders agree to “stake” these tokens—locking them for at least 180 days in exchange for a 2% annual yield paid in WLFI tokens, with the rate subject to change—they lose their voting privileges.

Staking, a common practice in crypto, requires investors to forgo selling their tokens for a set period in return for a yield. However, the governance votes affected by this proposal include decisions about when the remaining 80% of locked tokens will be released. To influence their own token unlock, investors must first relinquish their only liquid assets.

Investor Concerns and Lack of Transparency

Morten Christensen, a token holder and CEO of Airdrop.com, who attended a Trump memecoin dinner last May, voiced concerns: “With WLFI, investors entered without clear information.”

Since Donald Trump’s second term began, his family’s crypto ventures have repeatedly come under fire. A memecoin launched just before his inauguration benefited early buyers, while later investors suffered losses. A stablecoin project sparked conflict-of-interest debates in Congress as the administration worked on crypto regulations.

Unlike most crypto projects, where investors know the unlock schedule from the start, WLFI has not provided such details. Over a year after the initial token sale, 80% of early investors’ tokens remain locked with no announced timeline for release.

Expert Opinions on Unlock Schedules

Lex Sokolin, managing partner at Generative Ventures and a token economics specialist, commented: “It’s rare for a project not to disclose unlock timelines; these figures are usually set during the token launch. Transparency here is crucial.”

WLFI Token Performance and Staking Debate

Since some tokens became tradable last year, WLFI’s price has fallen by more than half. Critics argue the staking proposal is meant to reduce selling and prop up the price, but the team insists it aims to foster long-term engagement.

Statement from World Liberty Financial

World Liberty Financial explained on March 5: “Staking requirements for unlocked tokens ensure that governance decisions represent those committed to the WLFI ecosystem for the long haul—not short-term holders or speculators.”

Investor Reactions and Voting Results

With the unlock schedule still unclear, major investors like Andrei Grachev, managing partner at DWF Labs (which purchased $25 million in WLFI tokens last year), are holding off on further investments. “We still hold WLFI coins, but they’re locked. Until they become liquid, we won’t invest more,” Grachev said.

The proposal is currently being voted on, with the process running from March 5 to March 12. Over 300 comments on the project’s governance forum show a split among investors, but nearly 99% of those who have voted so far support the plan. Out of roughly 100 billion tokens in circulation, about 1.4 billion had been used to vote as of Saturday afternoon.

Token Distribution and Unlocking Schedules

Early investors acquired about 25% of the token supply between October 14, 2024 and March 14, 2025, at prices ranging from 5 to 15 cents per token. Eighty percent of these tokens remain locked. Around one-third of all tokens were allocated to founders—including Trump family members, the project team, and advisors—with a separate unlocking schedule.

Staking Criticism and Tiered Access

Christensen remarked, “I would never stake an unlocked token. Historically, adding staking leads to price declines. We joke that staking is a death sentence for a token—people buy to stake and then short an equal amount, creating selling pressure.”

The proposal also offers investors who stake at least 50 million WLFI direct access to the project team for partnership discussions, a move some see as favoring large holders over smaller investors.

Another investor, Bruno Ver, who is undecided on his vote, described the situation as a “Catch-22,” saying, “The proposal definitely makes things complicated.”

WLFI Token Price Update

As of Sunday, WLFI was trading below 10 cents, according to CoinMarketCap data.

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