(a) Problem the project solves

World Liberty Financial's stated mission is to democratize access to financial opportunities, support U.S. dollar-based stablecoins, and provide a U.S.-based decentralized platform that gives users information about and access to third-party DeFi applications.

(Source: Gold Paper)

(b) Operational priorities

WLFI's operational priorities are supporting U.S. dollar-based stablecoins through its USD1 stablecoin, building and operating the WLF Protocol, expanding governance participation through the WLF Governance Platform, and funding ecosystem development, liquidity provision, marketing initiatives, and treasury reserves through the Community Growth and Incentives allocation. Since September 2025 the project also directs 100% of fees earned by its protocol-owned liquidity to open-market WLFI buybacks and burns under a governance proposal that passed with 99.8% support.

(Source: Gold Paper, Tokenomics, Buyback & Burn Proposal, CoinDesk)

(c) High-level project overview

The WLF Protocol is a platform that provides information about and access to third-party DeFi applications, including wallet providers and liquidity pools. The project operates WLFI Markets, an onchain lending market built on the Aave V3 codebase where users supply, borrow, and repay assets. The project issues USD1, a fiat-backed stablecoin redeemable 1 to 1 for U.S. dollars, custodied by BitGo and deployed on Ethereum, BNB Chain, Solana, and Tron. The platform's Trade feature routes WLFI transactions through Uniswap V3 liquidity pools on Ethereum Mainnet, and the project also offers Bridge and Convert tools for moving tokens across supported chains.

(Source: Gold Paper, WLFI Markets, What is USD1, Trade $WLFI)

(d) Primary token functions

The sole utility of $WLFI is governance of the WLF Protocol. Tokenholders propose and vote on governance initiatives through the WLF Governance Platform, and the token confers no other rights.

(Source: WLFI Token Use and Acquisition T&Cs, Gold Paper)

(e) Control surface reliance

WLF is not a DAO. World Liberty Financial screens all formal proposals before they proceed to a tokenholder vote, approved protocol upgrades are implemented manually by a WLF Multisig, and governance control vests completely in the WLF Multisigs during a material adverse event or security risk.

(Source: Gold Paper, FAQ)

(a) IP ownership & control

The project does not have a DAO, and no DAO owns or controls any project intellectual property. World Liberty Financial LLC owns, develops, and operates the WLF Protocol and its associated intellectual property.

(Source: Gold Paper)

(b) Contract/admin powers

WLF is not a DAO. Formal proposals are submitted through Snapshot, World Liberty Financial screens proposals before voting, approved protocol upgrades are implemented manually by a WLF Multisig, and governance control vests completely in the WLF Multisigs during a material adverse event or security risk. Each WLFI token carries one vote subject to a 5% cap on any single holder or affiliated group.

(Source: Gold Paper, FAQ, $WLFI Governance)

(c) Locked-token rights (conditional)

No locking or staking mechanism confers additional governance or economic rights. Each WLFI token provides one governance vote subject to the 5% voting cap, and locked tokens held under the project's unlock schedules retain full governance voting rights while locked. The unlock mechanics for previously non-transferable tokens do not create any additional rights regime.

(Source: Gold Paper, $WLFI Governance, Unlock $WLFI)

(d) Value accrual & holder rights

WLFI is a governance-only token. It confers no revenue share and no rights to dividends, rewards, airdrops, or other distributions. Tokenholders hold no direct claim on the treasury. Under the September 2025 governance decision, 100% of fees earned by WLFI's protocol-owned liquidity are used to buy WLFI on the open market and permanently burn it, which reduces supply but creates no distribution right for holders.

(Source: WLFI Token Use and Acquisition T&Cs, WLFI Risk Disclosures, Buyback & Burn Proposal)

(e) Dissolution authority

The project does not have a DAO, so no onchain dissolution mechanism exists. Wind-up authority over the project rests with the corporate owners of World Liberty Financial LLC, World Liberty Financial, Inc., and WLF Holdco LLC under applicable state law, and the project has not publicly disclosed specific dissolution procedures for those entities.

(Source: Gold Paper, MiCA Whitepaper)

(a) Entity

The project does not operate a foundation entity. The entities directly involved in the issuance of the native token are World Liberty Financial LLC, a Florida limited liability company, World Liberty Financial, Inc., a Delaware nonstock corporation, and WLF Holdco LLC, a Delaware limited liability company, none of which is organized or held out as a foundation.

(Source: Gold Paper, MiCA Whitepaper)

(b) IP ownership & control

The project does not operate a foundation entity, so no foundation owns or controls project IP.

(c) Powers over DAO, treasury, protocol-controlled resources, and token administration

The project does not operate a foundation entity, so no foundation holds powers over governance, treasury actions, protocol-controlled resources, or token administration.

(d) Powers over DevCo

The project does not operate a foundation entity, so no foundation exerts direct or indirect influence over the DevCo.

(e) Contract/admin powers

The project does not operate a foundation entity, so no foundation holds pause, upgrade, or governance-executor authorities.

(f) Current economic arrangements and distribution policies

The project does not operate a foundation entity, so no mechanism directs protocol-controlled resources, treasury assets, fees, revenue, rewards, or token distributions to a foundation.

Blockworks note: All entity-level powers and economic arrangements sit with the DevCo entities described in Question 5.

(Source: Gold Paper, MiCA Whitepaper)

(a) Entity

World Liberty Financial LLC is a Florida limited liability company that owns, develops, and operates the WLF Protocol. World Liberty Financial, Inc. is a Delaware nonstock corporation that acts as the issuer surface identified in the MiCA whitepaper, and WLF Holdco LLC is its Delaware limited liability company parent.

(Source: Gold Paper, MiCA Whitepaper)

(b) IP ownership & control

World Liberty Financial LLC owns, develops, and operates the WLF Protocol. The Gold Paper states that WLF's current assets consist of intellectual-property licenses and agreements with service providers. The project has not published a full public inventory of its IP.

(Source: Gold Paper)

(c) Powers over DAO, treasury, protocol-controlled resources, and token administration

World Liberty Financial screens all governance proposals before they proceed to a vote. A WLF Multisig implements approved protocol upgrades, governance control vests in the Multisigs during material adverse events or security risks, and a treasury reserve held in a WLF Multisig covers operating expenses, indemnities, and obligations. The company also controls the WLFI token contract's blacklist function and has used it to freeze wallets, including 272 wallets blacklisted in September 2025.

(Source: Gold Paper, FAQ, ChainCatcher)

(d) Powers over Foundation

The project does not operate a foundation entity, so no such influence relationship exists.

(e) Contract/admin powers

WLF Multisigs administratively control the WLF Governance Platform and WLF Protocol, execute approved protocol upgrades, and assume full governance control during material adverse events or security risks. The WLFI token contract additionally includes issuer-controlled blacklist and activation functions administered by the company.

(Source: Gold Paper, Unlock $WLFI, ChainCatcher)

(f) Current economic arrangements and distribution policies

DT Marks DEFI LLC and its affiliates, including Donald J. Trump, received a fixed grant of 22.5 billion WLFI tokens and hold the right to receive 75% of net protocol revenues after deduction of agreed operating expenses and the initial treasury reserve, under a services agreement. AMG and WC Digital Fi LLC collectively received 7.5 billion WLFI tokens and hold the right to receive 25% of net protocol revenue, covering certain other WLF directors, officers, advisors, promoters, service providers, and their affiliates. Separately, under the governance decision passed in September 2025, 100% of fees earned by WLFI's protocol-owned liquidity across Ethereum, BNB Chain, and Solana are directed to open-market WLFI buybacks and permanent burns rather than to any entity or equityholder.

(Source: WLFI Token Use and Acquisition T&Cs, Gold Paper, Buyback & Burn Proposal)

(a) Launch supply totals

WLFI launched with a fixed initial supply of 100,000,000,000 tokens. Approximately 24.7 billion WLFI entered circulation around the September 1, 2025 trading launch, and the remaining supply was locked at that date. Circulating supply is 31.78 billion WLFI as of August 18, 2026.

(b) Recipient categories & use of funds

Token Sale, 33.893%, 33,893,000,000 WLFI, allocated to token sales to eligible participants. 25,000,000,000 WLFI were sold in two public rounds and approximately 8.893 billion were sold to strategic investors and institutional participants. Community Growth & Incentives, 32.6%, 32,600,000,000 WLFI, reserved for ecosystem development and partnerships, liquidity provision, marketing initiatives, and treasury reserves for future development and operations. Co-Founder Allocation, 30%, 30,000,000,000 WLFI, allocated to DT Marks, AMG, and WC Digital Fi, LLC. Team and Advisors, 3.507%, 3,507,000,000 WLFI, allocated to the core team, advisors, service providers, and personnel supporting protocol development.

(c) Initial price per token (if applicable)

No single uniform launch price was set. Public sale pricing was $0.015 per token in Round 1 and $0.05 per token in Round 2, and secondary-market price discovery began when exchange trading opened on September 1, 2025.

(d) Ticker / market symbol

The ticker / market symbol is WLFI.

(e) Total supply & supply regime

WLFI launched with a fixed supply of 100,000,000,000 tokens and has no inflation mechanism. Supply decreases over time through two burn channels, the buyback and burn program funded by 100% of protocol-owned liquidity fees and the 10% permanent burn applied when founder, team, and advisor holders activate their unlock schedule. Current total supply is approximately 99,946,076,584 WLFI as of August 18, 2026.

(f) Initial vesting / release schedules

Token Sale (public rounds). Tokens were initially non-transferable, 20% became unlockable on September 1, 2025, and the remaining 80%, totaling 17,043,666,558 WLFI, follows the schedule set by the governance proposal that passed on May 6, 2026, a 2-year cliff from the passing date followed by a 2-year linear unlock, fully distributed by year 4, on an opt-in basis with no burn. Founders, Team, and Advisors. 45,238,585,647 WLFI follow a 2-year cliff from the May 6, 2026 passing date, then a 3-year linear unlock across years 2 through 5, with 10% of activated tokens permanently burned. Community Growth & Incentives. This allocation has no fixed public release schedule and is deployed at issuer discretion for ecosystem, liquidity, marketing, and treasury purposes.

Blockworks note: (Source: Tokenomics, CryptoSlate, CoinGecko, crypto.news, Contract Addresses, Unlock $WLFI, Buyback & Burn Proposal, Unlock Governance Proposal)

• Planned but not yet executed airdrop: The project has not planned any WLFI token airdrop, so this sub-item does not apply.

  (Source: Tokenomics, WLFI Risk Disclosures)

• Executed airdrop: The project has never executed a WLFI token airdrop, so this sub-item does not apply. In June 2025 the project distributed 47 USD1 stablecoins to each eligible wallet that participated in the WLFI token sale and completed KYC, following a governance vote that passed on May 14, 2025 with 99.96% support. That distribution involved the USD1 stablecoin rather than the native WLFI token and was conducted as a test of the project's onchain distribution system.

  (Source: blocmates, CryptoSlate)

• No airdrop planned or conducted: World Liberty Financial has never conducted a WLFI token airdrop and does not plan to execute one. All WLFI distribution occurred through the token sale, community growth and incentives, co-founder, and team and advisors allocations, and the token terms state that holding WLFI confers no right to any dividend, reward, airdrop, or other distribution.

  (Source: Tokenomics, WLFI Risk Disclosures, Gold Paper)

Blockworks note: World Liberty Financial has not publicly disclosed any market-making arrangements, token loans, agreement durations, or agreement structures for WLFI. DWF Labs, a market-making and investment firm, purchased $25 million of WLFI in a strategic private transaction announced in April 2025 and acts as a liquidity provider for the project's USD1 stablecoin on Bitget, and no market-making token loan or allocation terms for WLFI itself are publicly disclosed in connection with that relationship.

(Source: Reuters, DWF Labs)

Blockworks note: WLFI spot trading opened across major centralized exchanges on September 1, 2025, with Binance opening WLFI/USDT and WLFI/USDC pairs at 13:00 UTC and OKX, Bybit, KuCoin, Gate.io, MEXC, Bitget, BingX, HTX, Upbit, and Bithumb listing the same day. The project has not publicly disclosed exchange-specific listing allocations, listing lockups, liquidity commitments, or native-token listing fees for any venue. The WLFI platform's Trade feature routes WLFI transactions through Uniswap V3 liquidity pools on Ethereum Mainnet, supports WLFI trading against USD1, USDC, and USDT with WLFI required on one side of every trade, and requires users to accept the WLFI token terms before confirming trades, with flagged or blocked accounts unable to use the feature. Protocol-owned liquidity positions on Ethereum, BNB Chain, and Solana generate the fees that fund the buyback and burn program.

(Source: crypto.news, OKX Listing Notice, Trade $WLFI, WLFI Token Use and Acquisition T&Cs, Buyback & Burn Proposal)

• Series Name: Public Sale Round 1
  • Investment Vehicle: Direct token sale conducted through concurrent U.S. exempt and non-U.S. offerings. The specific instrument is not publicly disclosed.
  • Date Of Sale: Began October 14, 2024 and closed in January 2025.
  • Number of tokens sold: 20,000,000,000 WLFI at $0.015 per token.
  • Vesting Schedule: Initially non-transferable. 20% became unlockable on September 1, 2025, and the remaining 80% follows the May 6, 2026 governance schedule, a 2-year cliff then 2-year linear unlock, fully distributed by year 4, on an opt-in basis.
• Series Name: Public Sale Round 2
  • Investment Vehicle: Direct token sale conducted through concurrent U.S. exempt and non-U.S. offerings. The specific instrument is not publicly disclosed.
  • Date Of Sale: Closed within the public-sale window ending March 14, 2025.
  • Number of tokens sold: 5,000,000,000 WLFI at $0.05 per token.
  • Vesting Schedule: Initially non-transferable. 20% became unlockable on September 1, 2025, and the remaining 80% follows the May 6, 2026 governance schedule, a 2-year cliff then 2-year linear unlock, fully distributed by year 4, on an opt-in basis.
• Series Name: Strategic and Institutional Sales
  • Investment Vehicle: Strategic private transactions. The specific instruments are not publicly disclosed.
  • Date Of Sale: November 2024 through June 2025. Justin Sun invested $30 million in November 2024 and an additional $45 million in January 2025 for a $75 million total, DWF Labs purchased $25 million in April 2025, and Aqua 1 Foundation purchased $100 million on June 26, 2025.
  • Number of tokens sold: Approximately 8.893 billion WLFI sold to strategic investors and institutional participants in aggregate.
  • Vesting Schedule: Strategic purchasers were subject to the same non-transferability regime as public-sale participants, with 20% unlockable from September 1, 2025 and remaining balances subject to the governance-approved unlock framework. Purchaser-specific vesting terms beyond that framework are not publicly disclosed.
• Series Name: ALT5 Sigma Private Placement
  • Investment Vehicle: Private placement in which World Liberty Financial, Inc. contributed WLFI tokens priced at $0.20 per token as consideration for ALT5 Sigma Corporation shares and warrants.
  • Date Of Sale: Closed August 12, 2025.
  • Number of tokens sold: ALT5 Sigma holds approximately 7,283,585,650 WLFI, about 7.28% of total supply, acquired through the $1.5 billion offering in which $750 million of consideration was paid in WLFI tokens.
  • Vesting Schedule: ALT5's WLFI holdings are subject to lockup, and specific vesting terms for the position are not publicly disclosed.

Blockworks note: The public token sale raised more than $550 million in concurrent U.S. and non-U.S. offerings between October 14, 2024 and March 14, 2025, and the sale program concluded in March 2025. The project filed a SEC Form D in connection with the U.S. offering.

(Source: ALT5 Press Release, ALT5 Holdings Update, Disruption Banking, Unlock $WLFI, Benzinga, Reuters, BeInCrypto, Tokenomics, Spartan Group, SEC Form D)

(a) Date & component affected

2025-09, Ethereum Mainnet. The incident affected WLFI holder wallets and involved the WLFI ERC-20 token contract's issuer-controlled blacklist function. The token contract itself was not exploited.

(Source: ChainCatcher, CoinDesk)

(b) Exploit vector summary

A phishing campaign targeted WLFI holders around the September 1, 2025 trading launch and first unlock. Attackers compromised holder wallets and attempted to drain WLFI tokens from them. The attack vector was social engineering against individual holders rather than a vulnerability in the token contract, minting controls, or burn mechanics.

(Source: ChainCatcher, Blockonomi)

(c) Quantified impact

WLFI blacklisted 272 wallets in early September 2025. Of these, 215 wallets were tied to the phishing attack, 50 were blacklisted at owner request after reported compromise, 5 were flagged for high-risk exposure, and 1 remained under investigation for suspected misappropriation of community funds. The issuer stated it intervened preemptively to stop attackers from draining funds, and no loss of tokens from the token contract, supply controls, or issuer custody occurred.

(Source: ChainCatcher, Blockonomi)

(d) Remediation/response taken

The issuer applied the token contract's blacklist function to freeze the affected addresses, worked with rightful owners to secure and move assets, and directed affected holders to official support channels for recovery.

(Source: ChainCatcher, Blockonomi)

(e) Current status

The issuer reported that recovery work with affected owners was underway as of September 2025 and that outcomes would be shared once reviews completed. The freeze of investor Justin Sun's wallet, applied during the same period after a 50 million WLFI transfer, remained a public dispute between Sun and the issuer.

(Source: CoinDesk, FXStreet)

(f) References (optional)

(Source: CoinDesk, ChainCatcher, Blockonomi)

Blockworks note: The WLFI token sale contract was audited by Blocksec, Zokyo, Fuzzland, and Peckshield before launch. The July 2024 exploit of Dough Finance, a prior venture built by WLFI co-founders Zachary Folkman and Chase Herro, predates World Liberty Financial and did not affect the WLFI token.

(Source: Gold Paper, CoinDesk)

(a) Regulatory, Legal & Tax Risks

The WLFI tokens have not been registered with U.S. or other authorities, and their regulatory treatment remains unsettled. If the tokens were deemed securities in the United States, the ability to acquire, trade, hold, use, or otherwise transact in them would become more limited and could trigger enforcement actions, fines, penalties, or registration requirements against the issuer entities.

(Source: WLFI Token Use and Acquisition T&Cs, WLFI Risk Disclosures)

Token acquisition and unlocking are subject to screening, know-your-customer checks, sanctions-related eligibility controls, and ongoing wallet monitoring, and only unlocked tokens are available for secondary trading. These restrictions create the risk that individual holders lose access to acquisition, unlocking, or trading based on jurisdiction or compliance status.

(Source: WLFI Token Use and Acquisition T&Cs, MiCA Whitepaper)

Holders are responsible for their own tax obligations in their relevant jurisdictions, and the tax treatment of acquiring, unlocking, holding, and disposing of WLFI is uncertain and varies by jurisdiction.

(Source: WLFI Token Use and Acquisition T&Cs)

(b) Protocol, Technology & Security Risks

The WLF Protocol interacts with third-party DeFi applications and wallet infrastructure, protocol upgrades are implemented through a WLF Multisig, and governance control vests in the Multisigs during material adverse events or security risks. Bugs, design flaws, or implementation errors in the protocol's contracts or in the third-party applications it integrates with can cause loss of funds or disruption. The token sale contract was audited by Blocksec, Zokyo, Fuzzland, and Peckshield, and the unlock smart contract has been audited, and audits do not detect every class of failure, so unaudited integrations, novel attack vectors, and operational failures remain possible.

(Source: Gold Paper, Unlock $WLFI)

The WLFI token contract includes issuer-controlled blacklist functions. The issuer used these controls in September 2025 to freeze 272 wallets, and this power means holder balances can be frozen by the issuer, which is a material control-surface risk for any individual holder.

(Source: ChainCatcher, CoinDesk)

Holders bear wallet-security risk directly, including loss or compromise of private keys, and failures of third-party wallet or governance-service availability limit participation. The September 2025 phishing campaign against holders demonstrated this risk in practice.

(Source: WLFI Token Use and Acquisition T&Cs, WLFI Risk Disclosures, Blockonomi)

(c) Token Economics, Unlocks & Incentive Risks

WLFI is a governance-only token with no dividend, revenue-share, or airdrop rights for ordinary holders, so holder value depends on governance participation, token utility, liquidity conditions, and market perception rather than a contractual claim on protocol cash flows. The buyback and burn program funded by protocol-owned liquidity fees is the only mechanism linking protocol activity to token supply, and its scale depends entirely on trading volume in protocol-owned pools.

(Source: WLFI Risk Disclosures, WLFI Token Use and Acquisition T&Cs, Buyback & Burn Proposal)

Allocations are concentrated. DT Marks-related arrangements carry 22.5 billion WLFI and 75% of net protocol revenues, other insiders and service providers carry 7.5 billion WLFI and 25% of net protocol revenues, and ALT5 Sigma holds approximately 7.28 billion WLFI. A 5% voting cap mitigates some control concentration, and the votable supply is variable, so enforcing those limits requires affiliated-holder monitoring by the issuer.

(Source: WLFI Token Use and Acquisition T&Cs, FAQ, ALT5 Holdings Update)

The supply schedule creates a defined but large future overhang. Public-sale participants unlocked 20% of allocations from September 1, 2025, the remaining 17,043,666,558 early-supporter WLFI unlock across years 2 through 4 from the May 6, 2026 proposal date, and 45,238,585,647 founder, team, and advisor WLFI unlock across years 2 through 5 from the same date with a 10% burn on activation. These schedules concentrate large unlocks beginning in May 2028 and create sustained supply-release pressure through May 2031.

(Source: Unlock $WLFI, Unlock Governance Proposal)