Tonight's First Release | 20 Q&As to Quickly Understand the Governance Logic of the Trump Family Project WLFI

Last weekend, the proposal dispute between World Liberty Financial (WLFI) and Aave drew market attention. Both parties became embroiled in a controversy over a "7% revenue share." After a week, WLFI is also set to launch its token claim and trading on September 1. So, what exactly is the governance model of this crypto project backed by the Trump family? Below, Odaily will guide you through an in-depth understanding via 20 official Q&As:

General Governance Questions

1. How to participate in WLF protocol governance?

The sole purpose of WLFI is to participate in the governance of World Liberty Financial (referred to as the "WLF Protocol"). Therefore, the community is encouraged to actively participate in proposals, discussions, and voting on WLF Protocol governance matters. If you do not intend to participate, please do not purchase this token.

Proposal Questions

2. How to participate in discussions on potential proposals?

Proposals will be discussed on the "Forum." Community members must register an account to participate in the forum. It should be noted that the forum is not limited to WLFI token holders; anyone with an account can participate. While the forum is a place to discuss potential WLF Protocol governance initiatives and "temperature check" measures before voting, actual token voting does not take place on the forum, and nothing on the forum determines the outcome of a vote. Some discussions on the forum may be purely social in nature.

3. How to submit a formal voting proposal?

Formal proposals are submitted via Snapshot. Any user who owns and holds votable WLFI tokens can create a proposal. World Liberty Financial will screen proposals before Snapshot voting begins and reserves the right to reject any proposal if its implementation would constitute or cause an unreasonable risk of violating legal requirements (including contractual obligations) or security risks, as defined by the WLF charter. These decisions are made solely by World Liberty Financial and are final.

4. What happens after a proposal is submitted?

After submission, the proposal enters a community review phase. During this period, all WLFI holders can review the proposal, provide feedback, and discuss its implementation. There is no minimum discussion period, but the voting period for specific proposals is typically two weeks. World Liberty Financial may adjust this period as needed.

5. How to prevent spam proposals?

World Liberty Financial will screen proposals and may reject any proposal it deems to be spam. Ultimately, through the governance process, additional screening measures may be created to allow users to submit proposals directly.

Voting Questions

6. How is voting conducted?

Once a proposal is approved for voting, a "snapshot" of token holders is taken. Token holders at that time are eligible to vote. In most cases, proposals will use single-choice voting (for or against), but in some cases (e.g., if a proposal may have more than two outcomes), ranked-choice voting may apply.

To participate in Snapshot voting, you must own WLFI tokens and hold them in a way that allows your wallet or similar application to connect to Snapshot. Snapshot voting allows off-chain voting (to avoid voters paying gas fees), and the results are stored on-chain and can be verified.

7. How do I know if a proposal is open for voting?

Proposals are usually announced on the Snapshot forum. Formal proposals can be submitted and viewed on Snapshot, but you must register on the forum to receive information about voting proposals.

8. How long is the voting period open?

The voting period for proposals is typically two weeks, but World Liberty Financial may make changes in certain cases.

9. Are there limits on the number of tokens that can participate in voting?

Yes. In addition to each token holder being limited to voting with 5,000,000,000 tokens (i.e., 5% of the total supply), any treasury tokens (i.e., tokens owned by World Liberty Financial) cannot be used for voting.

10. Are WLFI tokens transferable?

At this stage, WLFI tokens are not transferable or resalable. In July 2025, WLFI holders approved a proposal to allow WLFI token transfers. It is expected that WLFI will unlock a portion of tokens sold to early buyers according to a vesting schedule, making them tradable. The remaining WLFI tokens sold to early supporters will be subject to a second community vote to determine the unlocking and release schedule. The unlocking schedule for founders, advisors, and other personnel is expected to remain non-transferable and, in any case, will be subject to a longer vesting schedule. World Liberty Financial reserves the right to determine the timing and eligibility requirements for unlocking WLFI tokens at its sole discretion.

11. What happens if I do not participate in voting?

If you do not participate in discussions, proposals, and voting, you will not be able to use the functions of WLFI tokens and will miss the opportunity to help shape the future of the WLF Protocol and participate in the WLFI community.

12. What is the approval threshold for voting?

Proposals require an initial minimum quorum of 1,000,000,000 WLFI tokens voted, and a majority of WLFI tokens must vote in favor for the proposal to pass. These thresholds may be adjusted as the governance process evolves.

13. What happens if a token holder owns more than 5,000,000,000 WLFI tokens?

World Liberty Financial aims to embody distributed governance and has therefore decided to limit the voting rights of individual token holders. Wallets holding more than 5% of the total token supply (i.e., 5,000,000,000 or more WLFI tokens) will have their voting rights capped at 5,000,000,000 tokens. Furthermore, if it is found that someone holds more than 5,000,000,000 WLFI tokens across multiple wallets or addresses, measures will be taken to ensure that person's voting rights are capped at 5,000,000,000 tokens, regardless of how many addresses or wallets are used to control their total WLFI holdings. Early contributors and service providers holding more than 5% of tokens have disclosed their ownership and associated status.

14. What is the difference between total token supply, outstanding token supply, and votable token supply?

Total token supply refers to the total number of tokens ever issued, fixed at 100 billions.

Outstanding token supply refers to the total token supply minus the number of tokens held by WLF, including tokens sold to buyers in token sales and grants provided to advisors, service providers, directors, executives, and employees. Votable token supply refers to the outstanding token supply minus the number of tokens held by individuals and their affiliates known to hold more than WLFI tokens.

For example, if a holder owns 7,000,000,000 WLFI tokens, that holder can only vote with 5,000,000,000 WLFI tokens, and the total votable token supply will be reduced by 2,000,000,000 WLFI tokens. Since the votable token supply is variable and ultimately depends on the number of WLFI tokens sold or issued, WLF reserves the right to adjust the token voting procedure limit to 5% of the actual votable token supply at any time.

15. How to vote if tokens are held through a third-party custodian?

You should contact your third-party custodian to understand their voting policies and procedures.

Proposal Implementation Questions

16. How are approved proposals implemented?

Once a proposal is approved on Snapshot, if the approval (or rejection) requires on-chain platform operations, the relevant multisig parties should execute the operation within a reasonable time after the proposal passes. Some upgrade proposals may require extensive audits and other security verifications before they can be safely implemented on the platform, so the implementation time for approved proposals should be reasonably determined by the relevant multisig parties.

17. Under what circumstances will an approved WLFI governance proposal not be executed?

World Liberty Financial reserves the right to reject any proposed or approved proposal if its implementation would constitute or cause an unreasonable risk of violating the law (including any contractual obligations) or cause security risks. These decisions are made solely by World Liberty Financial and are final.

Other Questions

18. Will the WLF Protocol governance platform be upgraded?

There are currently no upgrade plans. The WLF Protocol governance platform may programmatically upgrade its voting procedures to automate certain proposals or types of proposals, but it should be assumed that no upgrades will occur in the future. Additionally, all parameters listed currently are only the platform's initial parameters and may change during the voting process, but such changes should not cause WLF to violate any laws or contractual obligations.

19. Can WLF Protocol governance be suspended in the event of major security risks or other threats?

The WLF Protocol or any related protocol may encounter a "major adverse event," meaning any event that causes the WLF Protocol or any related protocol to be unable to operate as normally expected for an extended period; or a "security risk," meaning any event that causes the WLF Protocol to cease operation or endangers users' safe use of the WLF Protocol. During a major adverse event or security risk, governance control of the WLF Protocol will be exercised entirely by multisig until normal governance operation resumes. Additionally, the "security multisig" responsible for WLF Protocol governance, WLF Protocol updates, major adverse events, and security risks may be approved by token holders and WLF. This security multisig has the authority to respond to such matters.

20. Is World Liberty Financial a Decentralized Autonomous Organization (DAO)?

World Liberty Financial is a Delaware non-stock corporation that manages the WLF Protocol, which allows token holders to vote on certain WLF Protocol governance decisions. The WLF Protocol is not a Decentralized Autonomous Organization (DAO) or any type of organization, but is managed and controlled by one or more multisig signers, with the number and specific signers determined by World Liberty Financial. While WLF Protocol governance may be affected by changes triggered by proposals approved by voting token holders according to procedures, World Liberty Financial is not bound by any such proposals or votes. WLFI token holders do not bear any obligations to each other or to World Liberty Financial. The relevant charter stipulates that if the WLFI token holder community approves, the WLF Protocol will implement certain WLF Protocol governance proposals.