Decentralized finance platform World Liberty Financial has unveiled a governance proposal to restructure the vesting schedules for over 62 billion locked WLFI tokens. The plan introduces multi-year lockups and a potential burn of up to 4.52 billion tokens from founder, team, advisor, and partner allocations.
Under the proposed terms, early supporters would face a two-year cliff followed by a two-year linear vest. Founder, team, advisor, and partner allocations could opt for a two-year cliff and a three-year linear vest. Tokens not accepted under the new terms would remain locked indefinitely. This structured approach aims to manage supply release and address holder concerns.
The proposal comes after significant criticism from early WLFI buyers regarding prolonged lockups and limited liquidity. Some holders had threatened legal action, prompting the project to formally introduce this plan.
Further scrutiny has targeted the platform's governance structure. Tron founder Justin Sun criticized WLFI for alleged transparency issues and a lack of meaningful participation in prior votes, citing dominance by a few wallets. In response, WLFI threatened legal action against Sun, who also urged the platform to disclose key wallet controllers, citing potential control risks.
Concerns have also surfaced regarding WLFI's treasury activity and market performance. The token recently hit a new all-time low, days after project-linked wallets reportedly used billions of tokens as collateral to borrow approximately $75 million in stablecoins.