Decentralized finance platform World Liberty Financial (WLFI) has put forth a governance proposal to restructure the unlock schedule for a massive 62.28 billion of its currently locked WLFI tokens. The plan introduces new, extended multi-year vesting schedules and includes a potential token burn mechanism.
The proposal outlines a two-year cliff followed by a two-year linear vesting period for tokens allocated to early supporters. For founder, team, adviser, and partner allocations, the terms are more stringent: a two-year cliff followed by a three-year linear vest, but only if those holders opt into the new agreement. The plan also provides for a burn of up to 4.52 billion WLFI tokens, which represents 10% of the total allocation for founders, team, advisers, and partners. Holders who do not accept these new terms would see their tokens remain locked indefinitely.
This move formalizes a phased unlock approach previously hinted at by the project, aiming to provide a structured release of tokens while avoiding a sudden, near-term increase in circulating supply. The proposal comes at a time when the Trump-linked platform is facing growing pressure from its token holders and broader scrutiny over its governance practices.
The governance proposal follows mounting criticism from early WLFI buyers who have expressed frustration over prolonged token lockups and limited liquidity. On April 10, the project announced it would introduce this proposal after some holders threatened legal action. Scrutiny further intensified around the platform's governance structure and decision-making transparency.
On April 13, Tron founder Justin Sun, a previous investor of $30 million in WLFI, publicly criticized the platform, alleging that prior governance votes were dominated by a small number of wallets and lacked meaningful participation. In response, WLFI threatened to file a lawsuit against Sun. On the same day, Sun urged WLFI to disclose who controls key wallets tied to its smart contracts, warning that the setup could allow for significant control, including the ability to freeze tokens.
The proposal also follows recent market turmoil for WLFI. On April 11, the token fell to a new all-time low. This decline occurred just days after wallets linked to the project used billions of WLFI tokens as collateral to borrow approximately $75 million in stablecoins, raising concerns about treasury activity.
