Tonight's debut | 20 Q&A quick overview of the governance logic of the Trump family project WLFI

Last weekend, the proposal dispute between World Liberty Financial (WLFI) and Aave attracted market attention, as both sides fell into a Rohmer situation over the "7% revenue sharing". A week later, WLFI is about to welcome its token's first claim and trading on September 1st. So, what exactly is the governance model of this encryption project backed by the Trump family? Below, Odaily will take you through 20 official questions and answers to understand it in depth:

General Governance Issues

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"), so we hope the community actively participates in proposals, discussions, and voting regarding the governance of the WLF Protocol. If you do not intend to participate, please do not purchase this Token.

Proposal Issues

2. How to participate in discussions on potential proposals?

The proposal will be discussed on the "forum". Community members must first register an account to participate in the forum. It is important to note that the forum is not limited to WLFI Token holders; anyone with an account can participate in the forum. While the forum serves as a venue for discussing potential WLF protocol governance initiatives and conducting a "temperature check" before voting, no actual Token voting will take place in the forum, and any actions in the forum will not determine the voting results. Some discussions in the forum may be purely social in nature.

3. How to submit a formal voting proposal?

The formal proposal is submitted through Snapshot, and any user who holds and hosts votable WLFI Tokens can create a proposal. World Liberty Financial will screen the proposals before the Snapshot voting begins and reserves the right to reject any proposal if its implementation would constitute or create an unreasonable risk of violating legal requirements (including contractual obligations) or safety risks, the specifics of which are defined by the WLF charter. These decisions are made solely by World Liberty Financial and are final.

4. What happens after submitting the proposal?

After the proposal is submitted, it will enter the community review stage. During this period, all WLFI holders can review the proposal, provide feedback, and discuss its implementation. There is no minimum requirement for the discussion period, but the voting period for specific proposals is usually two weeks, and World Liberty Financial may adjust this based on specific circumstances.

5. How to prevent spam proposals?

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

Voting Issues

6. How to vote?

Once the proposal is approved by vote, a "snapshot" of the Token holders will be taken. Token holders who hold the Token are eligible to vote. In most cases, the proposal will be subject to a single-choice vote, that is, for or against, but in certain cases (for example, if the proposal may have more than two outcomes), ranked-choice voting may apply.

To participate in Snapshot voting, you must hold WLFI Token and store these tokens in a way that allows connecting your wallet or similar applications to Snapshot. Snapshot voting allows off-chain voting (to avoid voters paying Gas fees), and the voting results will be stored on-chain and can be verified.

7. How to know if a proposal is eligible for voting?

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

How long is the voting open?

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

9. Is there a limit on the number of tokens that can participate in the vote?

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

10. Can WLFI Token be transferred?

At the current stage, WLFI is not transferable or resalable. WLFI holders approved a proposal in July 2025 to allow the transfer of WLFI tokens. It is expected that WLFI will unlock a portion of the WLFI tokens sold to early buyers according to the unlocking schedule, while the remaining WLFI tokens sold to early supporters will be subject to a second vote by the community 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, must comply with a longer unlocking schedule. World Liberty Financial reserves the right to determine the timing and eligibility requirements for unlocking WLFI tokens.

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

If you do not participate in discussions, proposals, and voting, you will not be able to use the WLFI Token features 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?

The proposal requires achieving the initial minimum quorum, which is a vote of 1,000,000,000 WLFI tokens, and the majority of WLFI token votes must be in favor of passing. These thresholds may be adjusted as the governance process proceeds.

13. What happens if a Token holder holds more than 5,000,000,000 WLFI Tokens?

World Liberty Financial aims to embody distributed governance, and thus has 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 discovered that an individual holds more than 5,000,000,000 WLFI Tokens across multiple wallets or addresses, measures will be taken to ensure that the person's voting rights are limited to 5,000,000,000 Tokens, regardless of how many addresses or wallets the individual uses to control their total WLFI Token amount, and early contributors and service providers holding more than 5% of Tokens have been made aware of their ownership and associated status.

14. What is the difference between the total supply of tokens, the supply of unissued tokens, and the supply of votable tokens?

The total supply of tokens refers to the total amount of tokens issued throughout history, fixed at 100 billion.

The undistributed token supply refers to the total token supply minus the number of tokens held by WLF, including tokens sold to buyers during the token sale and grants provided to advisors, service providers, directors, executives, and employees. The votable token supply refers to the undistributed token supply minus the number of tokens held by known individuals and their affiliates who hold more than a certain number of 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 supply of votable tokens will decrease by 2,000,000,000 WLFI tokens. Since the supply of votable tokens is variable, it will ultimately depend on the number of WLFI tokens sold or issued, therefore 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 the Token is held by a third-party custodian?

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

Proposal Implementation Issues

16. How are approved proposals implemented?

Once a proposal is approved on Snapshot, if that approval (or rejection) requires on-chain platform operations, the relevant multi-signature parties should carry out the operation, which will be completed within a reasonable time after the proposal passes. Certain upgrade proposals may require extensive audits and other security verifications to be safely implemented on the platform, so the implementation time for approved proposals should be reasonably determined by the relevant multi-signature parties.

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

World Liberty Financial reserves the right to reject any proposed or approved proposals that, if implemented, would constitute or result in an unreasonable risk of violating laws (including any contractual obligations) or pose security risks, and such decisions are made at the sole discretion of World Liberty Financial and are final.

Other Issues

18. Will the WLF Protocol governance platform be upgraded?

Currently, there are no upgrade plans. The WLF protocol governance platform may upgrade its voting procedures programmatically to automatically execute certain proposals or types of proposals, but it should be assumed that no upgrades will take place in the future. Furthermore, all parameters currently listed are only the initial parameters of the platform and may change during the voting process; however, such changes should not lead to WLF violating any legal or contractual obligations.

19. If there are significant security risks or other threats, could the WLF protocol governance be suspended?

The WLF protocol or any related agreements may encounter "significant adverse events," which are events that cause the WLF protocol or any related agreements to be unable to operate in the expected manner for a long time; or "security risks," which are events that cause the WLF protocol to cease operation or jeopardize the user's safe use of the WLF protocol. During the occurrence of significant adverse events or security risks, the governance control of the WLF protocol will be fully exercised by multi-signature until the governance operation of the WLF protocol returns to normal. In addition, the "security multi-signature" responsible for the governance of the WLF protocol, the updates of the WLF protocol, significant adverse events, and security risks may be approved by token holders and WLF, and this security multi-signature has the authority to respond to such matters.

20. Is World Liberty Financial a decentralized autonomous organization (DAO)?

World Liberty Financial is a non-stock corporation based in Delaware that manages the WLF Protocol, which allows Token holders to vote on certain governance decisions related to the WLF Protocol. The WLF Protocol is not a decentralized autonomous organization ( DAO ) or any type of organization, but is managed and controlled by one or more multi-signatures, with the number of "signers" and the specific signers determined by World Liberty Financial. While WLF Protocol governance may be affected by changes initiated by proposals approved by voting Token holders, World Liberty Financial is not bound by any such proposals or votes. WLFI Token holders do not have any obligations to each other or to World Liberty Financial. The relevant bylaws state that if the WLFI Token holder community approves, certain WLF Protocol governance proposals will be implemented.