World Liberty Plans Phased WLFI Token Unlock Vote After Holder Backlash

World Liberty Financial announced plans to introduce a governance proposal next week that will outline a phased unlock schedule for WLFI tokens held by early retail buyers. The proposal will first open for community input before proceeding to a formal vote, reflecting an effort to address growing concerns among token holders.

According to the project, the plan will not allow a full and immediate token release. Instead, it proposes a structured vesting model that releases tokens gradually over time. Data from Tokenomist shows that approximately 24.67% of WLFI’s total 100 billion token supply has been released so far, while about 75.33% remains locked or pending future governance decisions.

Retail Holder Pressure and Legal Threats Increase

The proposal follows increasing dissatisfaction among early WLFI buyers who have criticized prolonged token lockups. Initial sale terms stated that tokens would remain non-transferable and subject to governance approval, with unlock decisions not expected earlier than 12 months after the token sale began in mid-October 2024. The current proposal arrives roughly 18 months after the launch, during which the project raised at least $550 million across two funding rounds.

Some self-identified presale participants have issued legal notices in the United States and the Netherlands, although no verified lawsuits have been confirmed.

Treasury Borrowing Activity Raises Additional Questions

Community concerns have also intensified due to treasury borrowing activity. Onchain records indicate that World Liberty Financial borrowed roughly $75 million in stablecoins from Dolomite using WLFI tokens as collateral. The borrowing activity has led some community members to question treasury management and overall transparency as governance discussions move forward.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.