World Liberty Financial Opens WLFI Token Unlock Vote, What Next?

TLDR

• World Liberty Financial opened a seven-day WLFI governance vote.
• The proposal covers 62.3 billion WLFI tokens.
• Founding team tokens would face a two-year lock-up and three-year vesting.
• Early supporter tokens would face a two-year lock-up and two-year vesting.
• About 4.5 billion WLFI tokens are proposed for destruction.

World Liberty Financial has opened voting on a governance proposal that would set new lock-up and vesting terms for 62.3 billion WLFI tokens, drawing criticism from some early investors who say the plan changes expectations after they supported the project.

According to reports, the proposal would replace indefinite token locks with structured release schedules. The voting period will last seven days and requires a quorum of 1 billion WLFI tokens to pass.

The proposal covers tokens held by the founding team, advisors, partners, and early supporters. It also includes a planned burn of about 4.5 billion WLFI tokens, equal to roughly 10% of the allocation set aside for the founding team and investors.

WLFI Proposal Sets Two-Year Lock-Up

Under the proposal, up to 45.2 billion WLFI tokens held by the founding team, advisors, and partners would remain locked for two years. After that period, the tokens would unlock through a three-year linear vesting schedule.

Early supporter tokens, totaling about 17 billion WLFI, would also move into a two-year lock-up. Those tokens would then vest linearly over two years.

World Liberty Financial said the framework is intended to give clearer visibility into future token supply and align holders with longer-term governance participation. The project has also said the change could help address low participation in governance votes.

The proposal states that holders with locked positions need a formal structure as the WLFI ecosystem moves into its next stage. The project argues that a defined vesting model is better than leaving large token balances under open-ended restrictions.

Early Buyers Object to New Terms

Some pre-sale investors have objected to the plan, arguing that the two-year cliff and linear vesting terms were not part of their original expectations. They have described the proposal as a bait-and-switch because their tokens would remain locked for years while WLFI trades far below earlier levels.

World Liberty Financial sold about 25 billion WLFI tokens during public pre-sale rounds. Some tokens have already been unlocked, but about 17 billion tokens held by early buyers remain subject to restrictions.

WLFI was trading near $0.064 after the vote opened, down from about $0.073 before the proposal began. The token has fallen sharply from its reported peak near $0.33.

The price decline has increased tension between the project and early buyers who expected a faster path to liquidity. If the proposal passes, those investors would face a two-year waiting period before vesting begins.

Legal and Regulatory Pressure Builds

The governance vote comes as World Liberty Financial faces wider scrutiny. Tron founder Justin Sun recently filed a federal lawsuit accusing the project of freezing his WLFI tokens through an alleged blacklist function.

Sun claims the freeze affected 2.9 billion WLFI tokens and followed his refusal to invest more into the project’s USD1 stablecoin. World Liberty Financial has denied wrongdoing and has accused Sun of misconduct and token manipulation.

Sun has also criticized the unlock proposal, saying early buyers who do not affirmatively accept the new terms could remain locked indefinitely.

The project has also faced scrutiny over reports involving alleged links to sanctioned entities and questions about due diligence. Separately, U.S. lawmakers have discussed ethics provisions in crypto legislation that could restrict White House officials from promoting digital assets.

The outcome of the WLFI vote will determine whether the project moves ahead with its two-year lock-up structure, multi-year vesting schedules, and token burn.

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