The community behind World Liberty Financial (WLFI), the DeFi project closely linked to the Trump family, has voted to postpone a massive token unlock that threatened to flood the market with billions of coins. The governance turnaround came after the team moved $55.57 million worth of WLFI into an unlocking contract and ignited fears of a supply shock.
In late March, a proposal sought to activate the Lockbox mechanism, freeing 62.28 billion tokens—roughly 62% of the total supply—over a two-year vesting period. Early voting saw whale wallets almost unanimously back the plan, which also included burning 4.5 billion insider tokens. However, smaller investors and community members raised concerns about the potential dilution and market impact.
On-chain data showed that the WLFI team transferred $55.57 million into the unlocking contract, a required step for participants to join the new vesting schedule. Meanwhile, MEXC reported that the project had already moved $1.31 million in WLFI to OKX in February, often interpreted as preparation for potential sales.
Amid the backlash, a follow-up governance vote in early May saw token holders overwhelmingly support delaying the 62 billion token unlock and tightening vesting and burn rules. The vote strengthened community alignment but kept the project’s tokenomics under intense scrutiny.
In a parallel move, four team-linked wallets burned 100 million WLFI (worth approximately $6.68 million) over the course of 19 hours, as noted by on-chain analyst Yu Jin. The wallets first sent 1 billion tokens into the unlocking ownership contract and then destroyed the mandatory 10% as part of the Lockbox process. This burn, while small relative to the looming 62 billion overhang, signals insider willingness to reduce circulating supply incrementally.
WLFI’s price hovered near $0.067 following the news, with high volatility. Analysts suggest the token could remain choppy between $0.055 and $0.075 in the near term, but any sign of renewed insider selling without corresponding burns could drag the price below $0.05. The community’s focus now turns to whether future unlocks will be paired with similar burns, maintaining the delicate balance between insider liquidity and market stability.
