WLFI proposes unlock plan for 62 billion tokens with long lockups and burns

Decentralized finance (DeFi) platform World Liberty Financial on Wednesday posted a governance proposal that would place 62.28 billion locked WLFI tokens under new multiyear vesting schedules and introduce a potential burn for founder, team, adviser and partner allocations.

Under the proposal, early supporters’ locked tokens would face a two-year cliff followed by a two-year linear vest. Founder, team, adviser and partner allocations would face a two-year cliff followed by a three-year linear vest if those holders opt in to the new terms.

The plan also provides for a burn of up to 4.52 billion WLFI tokens, or 10% of the founder, team, adviser and partner allocation. Holders who do not accept the new vesting terms would remain locked indefinitely.

The move formalizes a phased unlock approach previously signaled by the project, offering a structured release of tokens while avoiding a near-term increase in supply. It comes as the Trump-linked platform faces growing pressure from holders and broader scrutiny of its governance.

Source: World Liberty Financial

WLFI proposal follows backlash, governance scrutiny

The proposal follows mounting criticism from early WLFI buyers over prolonged lockups and limited liquidity. On April 10, the project said it would introduce the proposal after some holders threatened legal action.

Additional scrutiny emerged around the platform’s governance structure and decision-making process.

On Monday, Tron founder Justin Sun, who previously invested $30 million in WLFI, criticized the platform over transparency concerns, 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.