WLFI Selloff Deepens After Controversial Governance Vote Goes Live

TL;DR

World Liberty Financial's WLFI token dropped 17% as a controversial governance proposal opened for voting, affecting over 62 billion tokens. The proposal includes strict vesting schedules for early investors and insiders, leading to significant backlash from the community.

Key points

WLFI token lost 17% of its value amid governance vote
Proposal affects over 62 billion WLFI tokens
Voting shows 99.95% support but faces community backlash
Strict vesting schedules for early investors and insiders
WLFI has dropped 70% since its market debut

Mentioned in this story

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WLFI

World Liberty Financial’s native token WLFI lost roughly 17% of its value on Wednesday as a governance proposal affecting more than 62 billion WLFI tokens officially opened for community voting — and the backlash was immediate.

A Token Already Deep In The Red

WLFI was trading at around $0.06 at the time of writing, according to data from CoinGecko. That marks a 70% drop since the token first reached open markets, making Wednesday’s selloff the latest in a long string of losses for holders of the Trump-family-linked DeFi project. The proposal behind the price drop would impose strict vesting schedules on tokens currently held by early investors and insiders. Under the plan, early investors face a two-year lockup cliff, followed by two more years of gradual release. Founders, team members, and advisers get the same two-year cliff but with a three-year linear vest after that. Voting runs through May 7.

Token unlock proposal is now live for vote. ☝️ This is one of the most significant governance proposals in WLFI history. Here’s what’s at stake.

— WLFI (@worldlibertyfi) April 29, 2026 World Liberty Financial framed the move as a show of long-term commitment. “62,282,252,205 locked WLFI tokens are subject to this proposal,” the project said in a post on X. “None of it touches the market for a minimum of two years if passed.”

Voting Numbers Tell Only Part Of The Story

On paper, the vote is going well. As of Wednesday, 99.95% of cast votes supported the proposal, and the required quorum of 1 billion WLFI tokens had already been cleared, with 6 billion tokens in favor and just 3.2 million against.

https://www.tradingview.com/x/NFXKPUD2/

WLFIUSDT now trading at $0.06. Chart: But those numbers don’t capture the full picture. Criticism has been loud on X, where replies to World Liberty’s announcement were largely negative. The voting structure itself drew sharp criticism — anyone who does not cast a vote risks having their tokens locked up with no end date. That mechanic has been widely called coercive.

Q&A

What is the impact of the WLFI governance proposal on token holders?

The governance proposal imposes strict vesting schedules on WLFI tokens, leading to a 17% drop in value and significant backlash from token holders.

How much has WLFI token value decreased since its market debut?

WLFI has decreased by 70% since its market debut, trading at approximately $0.06 at the time of the recent selloff.

What are the voting results for the WLFI governance proposal?

As of Wednesday, 99.95% of votes cast supported the proposal, with over 6 billion tokens in favor and only 3.2 million against.

Why is the WLFI governance proposal considered controversial?

The proposal is seen as controversial due to its coercive voting structure, which risks locking tokens indefinitely for those who do not vote, and the long vesting period for early investors.