Key Takeaways:
DeFi platform World Liberty Financial said it will introduce a governance proposal next week for a phased unlocking of its WLFI tokens, approximately 18 months after raising at least $550 million from early investors.
The platform, linked to the Trump family, specified the proposal will not be for a full, immediate unlock but for a structured, long-term vesting plan. "The proposal will be opened for community input before proceeding to a formal vote," the project stated on X (formerly Twitter). The vote comes after public pushback from token holders, with at least one self-identified buyer claiming to have filed legal notices in the United States and the Netherlands.
Data from Tokenomist shows that about 75.33% of WLFI’s 100 billion token supply remains locked, with only 24.67% having been released. The project’s early sale materials stated tokens could remain locked indefinitely, subject to a governance vote no earlier than 12 months after the sale. That threshold has now been passed by six months, intensifying investor demands for liquidity.
The vote's outcome could introduce significant sell pressure on WLFI if a large supply is unlocked, creating potential price volatility. The ongoing dispute and potential legal challenges threaten to damage the project's reputation, which has also faced community concerns over its on-chain borrowing activity after its treasury borrowed roughly $75 million in stablecoins from Dolomite using WLFI as collateral.
This article is for informational purposes only and does not constitute investment advice.
