Key Takeaways
- WLFI plummeted approximately 14% following the launch of a governance vote concerning 62 billion token unlocks
- A two-year cliff period precedes token circulation under the proposal, with additional multi-year vesting requirements
- Voting shows 99.95% approval, yet social media platforms reveal intense community opposition
- Justin Sun, Tron’s founder, alongside Moonrock Capital’s Simon Dedic, have voiced strong disapproval
- Participants who abstain from voting face indefinite token lockup
World Liberty Financial’s WLFI token experienced a sharp decline of nearly 14% this Wednesday following the launch of a governance vote that would subject more than 62 billion tokens to extended vesting periods spanning multiple years.
Initially introduced on April 15, the proposal became active for voting on Wednesday. The voting period extends through May 7, requiring a minimum of 1 billion tokens to achieve quorum.
Current data shows 99.95% support among voters, with approximately 6 billion tokens backing the measure and merely 3.2 million opposing it. The minimum quorum threshold has been successfully reached.
At press time, WLFI traded at $0.064, representing a decline from the pre-vote price of $0.073. Having reached an all-time peak of $0.33, the token has depreciated by 72.8% since its market debut.
The governance measure encompasses approximately 45 billion tokens designated for founders, advisors, and initial partners, implementing a two-year cliff followed by a three-year linear vesting period. An additional 17 billion tokens reserved for early protocol supporters are subject to a two-year cliff and two-year vesting timeline.
Investor Outcry Intensifies
Despite overwhelming on-chain voting approval, sentiment on X has skewed heavily negative. Numerous pre-sale participants perceive the revised vesting framework as deceptive, particularly after waiting over 12 months since the project’s launch.
“What’s this 2 year cliff 2 year vesting bullshit? I don’t understand how early investors gotta wait up to 4 years to get their full allocation. Dirty work!” one commenter wrote on X.
Simon Dedic, founder of Moonrock Capital, drew parallels between the proposal and a rug pull scenario, raising concerns about why the two-year unlock timeline corresponds with the remaining duration of Donald Trump’s presidency.
Tron founder Justin Sun, among WLFI’s most significant investors, characterized the proposal as among the “most absurd” he’s encountered. Sun is presently engaged in legal proceedings with World Liberty following the team’s decision to freeze his token holdings and restrict his governance voting privileges.
Potential Token Burn Component
Should the proposal gain approval, roughly 10% of tokens allocated to the founding team and early investors could face permanent elimination, totaling approximately 4.5 billion tokens.
World Liberty maintains that this framework aims to replace unlimited token locks with transparent, time-bound vesting schedules, ensuring tokens remain with participants “genuinely committed” to the project’s long-term success.
The proposal further stipulates that holders who decline to explicitly accept the revised vesting conditions will face indefinite token locks.
Approximately 25 billion WLFI tokens were distributed during public presale phases from a total supply of 100 billion. Pre-sale participants currently retain around 17 billion of those tokens.
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