The decentralized finance project linked to the Trump family, World Liberty Financial, has triggered a wave of criticism following its recent governance vote. The approval of the USD1 growth proposal was achieved thanks to voting power concentrated in a few addresses linked to the official team. According to data collected this January 20, 2026, the top nine wallets controlled nearly sixty percent of the final decision.
The controversy escalated when it was revealed that retail WLFI holders were unable to participate due to technical restrictions on their assets. Nine wallets concentrated fifty-nine percent of the total voting power during yesterday’s session. Researcher DeFi^2 reported on social media that the largest single wallet contributed nearly nineteen percent of the voting force needed. This concentration of power has raised serious doubts about the true decentralization of the protocol and the influence of the founders on critical decisions today.
The fact is that investors who acquired tokens during the asset generation event remain locked without access to their funds. While strategic accounts pushed the measure through, ordinary users are not allowed to vote on the unlocking of their own digital holdings. This lack of access has generated frustration among community members who expected a much more open and equitable governance. Thus, the USD1 growth proposal is perceived as an imposition of the board over the interests of small holders.
The financial ecosystem under scrutiny for its net income distribution
On the other hand, the economic structure detailed in the project’s “Gold Paper” has intensified unrest among participants. The document states that seventy-five percent of net income goes to entities directly linked to the Trump family. The remaining twenty-five percent is allocated to strategic partners, leaving WLFI holders with no rights to protocol revenue. Therefore, critics question the use of governance to expand the system without offering direct benefits to those who provided the initial capital to build the treasury.
Likewise, some voters who opposed the measure argue that this new phase further dilutes the value of their assets. The platform already has significant reserves in assets like Bitcoin and Ether, but users receive no rewards for them. As the firm seeks to expand, investors suggest that treasury assets should be liquidated in order to finance USD1 stablecoin incentives. In this way, the issuance of new instruments that harm the position of original buyers of the governance cryptocurrency would be avoided.
Will World Liberty Financial successfully obtain the banking charter amid current distrust?
Recently, the firm applied for a national trust banking charter in the United States to regulate the issuance of its stablecoin. This move would allow the entity to manage asset custody and conversion without relying on external providers or third parties. However, regulatory pressure and community discontent could complicate the process of obtaining these necessary legal permits. The company is expected to respond to centralization allegations while advancing its integration with institutional markets this year.
To sum up, the future of the project will depend on its ability to reconcile with its user base and offer real transparency. Investors will be watching to see if unlocking options are finally enabled to allow democratic participation on the blockchain. Mass adoption of the protocol will only be possible if incentives are guaranteed to be aligned with all participants in the financial ecosystem. Therefore, the coming weeks will be fundamental to define the ethical and technical course of World Liberty Financial.
