World Liberty Financial, a venture focused on decentralized finance (DeFi), has raised more than $550 million through the sale of governance tokens, but the project has faced criticism due to its centralized structure and the Trump family’s substantial financial stake.
Launched in 2024, World Liberty aims to provide access to financial services via cryptocurrencies, without the need for intermediaries like banks. However, it has yet to launch a public platform and operates with a small team.
In March 2025, World Liberty revealed that the Trump family had assumed control of the business, replacing two of its co-founders, Zak Folkman and Chase Herro, as the key decision-makers. This shift in leadership granted the Trump family a 60% stake in the company, along with a 75% share of the revenues from token sales. As a result, the Trump family is entitled to about $400 million in fees from the $550 million raised thus far.
Governance Token Sales and Centralization Concerns
The governance tokens sold by World Liberty, which allow holders to vote on changes to the platform’s code and direction, are not tradable. This structure has raised concerns about the project’s level of centralization, with experts questioning the financial benefits for public token holders. Industry professionals have pointed out that the arrangement essentially excludes token holders from any meaningful financial participation in the venture.
Experts like Georgetown University’s Jim Angel and Marquette University’s David Krause have raised doubts about the project’s fairness. They argue that the governance token model offers little to no economic benefit for the majority of holders, especially considering the Trump family’s overwhelming control over the company’s operations and revenues.
Ethical Concerns and Political Implications
The Trump family’s involvement in World Liberty, particularly its large share of the project’s revenues, has raised ethical questions. Critics argue that the venture’s structure could potentially allow for political favoritism, with people buying tokens in hopes of gaining influence with the president. As one former U.S. banking regulator noted, the project could serve as a vehicle for foreign governments or oligarchs to funnel money to the president, raising concerns about conflicts of interest.
The Trump Organization has distanced itself from the World Liberty venture, stating that the president’s assets and investments are held in a trust managed by his children. However, critics remain wary of the potential for influence-peddling and the centralization of power within the project. Despite these concerns, World Liberty continues to attract significant investment, with large sums coming from wealthy individuals and anonymous crypto wallets.