WLFI Token Drops 13% As Governance Vote Opens

WLFI Token Drops 13% As Governance Vote Opens

World Liberty Financial’s token WLFI fell nearly 13% to $0.064 as voting opened on a proposal to unlock 62 billion tokens. The decline reflects investor concern over extended vesting timelines and uncertainty around future circulating supply.

The proposal introduces structured vesting schedules to replace indefinite token locks, according to project documentation. Roughly 45 billion WLFI tokens allocated to insiders would follow a two-year cliff and three-year vesting period, while up to 17 billion tokens for early supporters would vest over two years after a similar delay. The vote requires a 1 billion WLFI quorum and will remain open for seven days.

Will Token Vesting Changes Restore Market Confidence?

The plan aims to improve transparency around supply dynamics while addressing low governance participation. Yet early investors argue the revised terms delay liquidity beyond initial expectations, particularly after more than a year of restricted transferability. Approximately 25 billion tokens were sold in presale rounds, with around 17 billion still held by early participants.

World Liberty Financial (WLFI) USD Price

The token previously reached an all-time high of $0.33 before declining sharply, highlighting volatility common across DeFi governance assets. By comparison, many established DeFi protocols implement vesting schedules at launch, rather than retroactively adjusting terms after distribution. That distinction has intensified criticism from parts of the WLFI community.

Project contributors said the proposal is designed to align long-term incentives across stakeholders.

“This proposal establishes a clear, structured vesting framework across all holder cohorts,” the team stated, adding that up to 10% of insider allocations, or about 4.5 billion tokens, could be permanently burned if approved.

Critics, including some investors posting on X, described the additional lockups as unfair and questioned the project’s long-term viability.

Governance tensions are compounded by broader controversies surrounding the project’s affiliations and investor base. Legal disputes, including a lawsuit from Tron founder Justin Sun over frozen tokens and voting rights, have added to uncertainty. The next catalyst will be the outcome of the vote and whether it meets quorum, which will determine both token supply timelines and investor sentiment.

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