70% of the world’s free financial tokens are reserved for insiders: report

A draft white paper obtained by CoinDesk reveals that 70% of the World Freedom Financial Project Management Token, WFI, is reserved for insiders, including founders, team members and service providers.

The white paper also shows that WMFI cannot transmit unless there is regulatory transparency for such signals.

token allocation

Former US President Donald Trump and his sons have promoted Global Freedom Finance as a revolutionary tool in finance and empowering everyday people. The platform was pushed as a solution to what the Trump family described as a “rigged” traditional financial system.

Despite these promises, the proposed issuance of WMFI tokens has raised concerns in the crypto community.

According to the report, most of them are controlled by selected insiders, and only 30 percent are allocated for public sale. In particular, some of the money collected from this public sale is distributed to the internal components of the project, and the remaining funds are kept in the treasury to support operations.

As the story goes, a consultant for such early-stage projects responded with a “joke” when asked about the 70% insider assignment.

This allocation model differs from that used by other major blockchain projects. For example, Ethereum's Genesis Block reserved 16.6 percent of its Ether (ETH) supply to early contributors, while Cardano reserved 20 percent of its ADA tokens. By comparison, Bitcoin's anonymous creator, Satoshi Nakamoto, is estimated to hold 5 percent of its total supply.

However, World Liberty Financial Tokinomics is not yet finished and the project team is said to be working on adjustments.

Tokens will be non-transferable

WLFI tokens will also be non-transferable. This means that once purchased, they cannot be traded or transferred between users, a move intended to protect against potential security law violations.

The white paper states that they will be locked indefinitely in a wallet or smart contract until they are unlocked through governance processes that meet legal requirements.

Although the document mistakenly refers to FinCEN, not the Office of Foreign Assets Control (OFAC), buyers are subject to screening to ensure they are not on the blacklist.

Meanwhile, the project has attracted unwanted attention from scammers and hackers. Recently, the X accounts of Eric Trump's wife, Laura Trump, and Donald Trump's youngest daughter, Tiffany Trump, were hacked and used to promote a fraudulent crypto token under the guise of World Freedom Financial.