TLDR
- WLFI proposal covers 62.28B tokens across all holder groups
- Up to 4.52B tokens will be burned from team allocations
- Founder and team tokens face 2-year cliff and 3-year vesting
- Early supporters keep full tokens with 4-year vesting schedule
- Non-participating holders will remain locked indefinitely
World Liberty Financial (WLFI) has introduced a governance proposal covering 62.28 billion tokens. The plan includes a potential burn of up to 4.52 billion tokens. The proposal also sets new vesting schedules for different groups of token holders.
The team described the plan as a step toward long-term governance alignment. In a public statement, WLFI said, “We believe it represents one of the strongest long-term governance alignment signals in DeFi.” The proposal is now open for community discussion and voting.
The total tokens covered include allocations held by founders, team members, advisors, partners, and early supporters. These tokens are currently locked, and the proposal defines how and when they may unlock.
Founder and Team Tokens Face Burn and Extended Vesting
The proposal covers 45.24 billion tokens held by founders, team members, advisors, and partners. These holders can choose to accept new vesting terms or remain locked. If they opt in, 10 percent of their tokens will be permanently burned.
This burn could remove up to 4.52 billion tokens from the total supply. The remaining tokens will follow a two-year cliff and a three-year linear vesting period. Tokens will start unlocking after two years and finish by year five.
WLFI stated that these are the least favorable terms in the proposal. The team noted that the burn acts as a public commitment. The statement said, “These tokens will not be recoverable under any future governance action.”
Holders who do not accept the new terms will not face a burn. However, their tokens will remain locked without a set unlock schedule.
Early Supporters Receive Separate Vesting Terms
The proposal also includes 17.04 billion tokens held by early supporters. These tokens will follow a different vesting structure. Early supporters will have a two-year cliff and a two-year linear vesting period.
Unlike the team allocation, no tokens from this group will be burned. Early supporters will retain their full token allocation. Tokens will begin unlocking after two years and complete distribution by year four.
WLFI explained that early supporters played a key role in the project’s growth. The structure aims to provide a clear and predictable release of tokens. At the same time, it keeps governance participation active over a defined period.
Holders in this group must accept the new terms to join the vesting schedule. If they do not opt in, their tokens will stay locked under current conditions.
Governance Participation and Supply Clarity
WLFI reported that past governance participation ranged from 2.7 billion to 11.1 billion tokens. This represents a portion of the total locked supply. A large share of tokens has not been used in governance voting.
The proposal aims to address this gap by setting a clear timeline. Tokens that opt in will remain locked for at least two years. This creates a defined period for governance participation.
WLFI stated, “62,282,252,205 WLFI tokens are subject to this proposal and if passed will remain committed to governance participation for at least 2 years.” The plan also reduces uncertainty around future token supply.
The team linked the proposal to recent developments in its ecosystem. These include the growth of the USD1 stablecoin and integration with multiple blockchain networks. The proposal now awaits community response and further discussion.
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