World Liberty Financial has introduced a governance proposal targeting over 62 billion WLFI tokens held by early backers and internal stakeholders. The plan, if approved, would immediately destroy up to 4.5 billion tokens from founders, team members, advisers, and partners - approximately 10% of their holdings.
The proposal also introduces new four-year vesting schedules for early supporters, with a two-year cliff followed by linear unlocking. No tokens from this group would be burned.
Founders, team members, advisers, and partners face stricter terms. Opting into the new structure means 10% of their holdings would be burned, with the remainder vesting over five years, including a two-year cliff. Those declining the terms remain locked indefinitely but retain governance rights.
This initiative aims to address a "governance overhang," as only about 23% of eligible locked tokens have participated in past proposals. World Liberty Financial states the changes will create a clearer framework for token distribution and ensure governance power resides with active participants.
The move supports the project's next growth phase, following the launch of its stablecoin, lending markets, and exchange integrations. The proposal requires a seven-day vote, a quorum of 1 billion tokens, and a simple majority to pass. Token holders will have ten days to accept new vesting terms post-deployment.