A crypto venture named World Liberty Financial has amassed over half a billion dollars, with the Trump family seizing control of the project and securing the majority of its funds. This move was facilitated by governance terms criticized by industry experts for favoring insiders. Despite raising substantial capital, the company's public platform remains unlaunched, and its staff is minimal. The tokens issued, labeled $WLFI, offer voting rights on project changes but cannot be traded.

As fundraising progressed, it was disclosed that the Trump family had assumed control through an entity holding a 60% stake in the business. Consequently, they are entitled to 75% of token sale revenues and 60% from operations once the core business commences. Academics have noted that these arrangements make World Liberty unusually centralized compared to other DeFi platforms, raising concerns about financial participation for public investors or token holders.

Shifting Leadership and Revenue Allocation

The transition of leadership within World Liberty Financial saw the Trump family gaining significant control over the venture. Through an entity where they hold a major stake, they now command a large portion of both token sales and operational revenues. This arrangement leaves only a small fraction of the raised funds for building the platform, sparking criticism about the venture's centralization and exclusivity.

In January, World Liberty revealed that the Trump family had taken over control from the original co-founders, Zak Folkman and Chase Herro. This change involved replacing them as controlling parties with an entity in which the Trump family holds a 60% interest. As a result, the family claims a substantial share of net revenues from token sales and future operations. Experts argue that this setup excludes public investors from meaningful financial involvement, making the project stand out as more centralized than typical DeFi platforms. For instance, Georgetown University's Jim Angel questions the economic benefits for token owners, while Marquette University's David Krause highlights the exclusionary nature of the project's structure.

DeFi Ambitions and Operational Challenges

World Liberty Financial aims to revolutionize financial services through decentralized finance (DeFi) by enabling access without traditional intermediaries like banks. However, despite raising substantial funds, the company has yet to launch a public platform, revealing challenges in executing its ambitious plans. Collaborations and product developments remain in early stages, indicating ongoing hurdles in achieving operational goals.

Although World Liberty intends to democratize a new financial system, its progress has been slow. The venture has announced plans for products such as a "lend and borrow" market and a personal finance application, alongside a stablecoin backed by assets like U.S. Treasuries. However, CertiK’s review suggests that several functionalities are not yet fully operational. Furthermore, collaborations with companies like Ondo Finance show promise but remain exploratory. Software developers associated with previous projects linked to the co-founders highlight potential continuity in technical expertise, though challenges persist. Overall, while the vision is expansive, actual implementation faces significant obstacles, reflecting broader issues in the DeFi sector concerning development timelines and resource allocation.