WLFI Falls 15% as Community Debates Massive Token Lock Plan

The plan would place early investor and insider holdings under a two-year lockup followed by a gradual release over two to three years. Despite receiving about 99.95% support and surpassing quorum, the proposal has drawn a lot of criticism over its structure, timing, and voting mechanics.

World Liberty Token Tumbles

The native token of Trump-family-linked World Liberty Financial (WLFI) dropped by about 15% in a single day, as a controversial governance proposal caused intense debate in the community. 

WLFI’s price action over the past 24 hours (Source: CoinCodex)

The proposal officially went live for voting after being introduced on April 15. It aims to place more than 62 billion WLFI tokens held by early investors and insiders under a strict multiyear vesting schedule. If approved, these tokens could be locked for an initial two-year period before being gradually released over an additional two to three years.

Despite the scale and implications of the proposal, early voting results show overwhelming support. At press time, approximately 99.95% of participating votes favor the measure, with the quorum requirement of 1 billion tokens already surpassed. Around 6 billion tokens have been cast in support, compared to just 3.2 million opposing votes. 

World Liberty Financial described the proposal as one of the biggest governance decisions in its history, as  none of the locked tokens would enter circulation for at least two years if the measure passes.

However, the strong voting support has not translated into community-wide approval. The proposal has faced a lot of criticism from several users, many of whom question both its structure and timing. Critics argue that the long lock-up periods, combined with the planned unlock schedule, could create uncertainty and potential selling pressure in the future. Some people also raised concerns about the alignment of the vesting timeline with the remainder of Donald Trump’s presidential term, suggesting it may not be coincidental.

More controversy stems from the voting mechanics themselves. Under the current design, token holders who choose not to participate in the vote risk having their holdings locked indefinitely, which has been criticized as coercive. The vesting structure further differentiates between early investors and insiders, with the latter facing a longer three-year linear release period following the initial two-year cliff.

World Liberty Financial defended the proposal by stating that it is intended to create a clearer governance framework and ensure that tokens stay in the hands of committed, long-term participants. 

Nevertheless, market sentiment seems to suggest that there is still some uncertainty. WLFI’s price declined sharply and is still way below its post-launch highs. The token is currently down more than 70% since entering the open market.