Decentralized finance (DeFi) platform World Liberty Financial on Wednesday published a governance proposal that would place its 62.28 billion locked-up WLFI tokens under novel multi-year vesting schedules and introduce potential losses for founders, teams, advisors and partners.
Under applicationlocked early backer tokens will face a two-year cliff followed by a two-year linear vest. The allocation of founders, teams, advisors and partners would face a two-year cliff, followed by a three-year linear grace period if those holders agreed to the novel terms.
The plan also calls for burning up to 4.52 billion WLFI tokens, or 10% of the founder, team, advisor and partner allocation. Holders who do not accept the novel vesting conditions will remain blocked for an indefinite period.
The move formalizes the phased unlocking approach previously signaled by the project, offering an arranged release of tokens while avoiding a short-term surge in supply. It comes as the Trump-linked platform faces growing pressure from holders and broader scrutiny of its management.
WLFI’s proposal is driven by management response and control
The proposal follows growing criticism from early adopters of WLFI over prolonged outages and tight liquidity. The project announced on April 10 that it would present a proposal after some holders threatened legal action.
Additional scrutiny focused on the platform’s management structure and decision-making process.
On Monday, Tron founder Justin Sun, who previously invested $30 million in WLFI, criticized the platform over transparency concerns, saying past management votes were dominated by a tiny number of portfolios and lacked meaningful participation. In response, WLFI threatened to file a lawsuit against Sun.
Related: Trump faces renewed backlash as Trump-linked crypto tokens hit rock bottom
On the same day, Sun insisted that WLFI disclose who controls key wallets associated with its intelligent contracts, warning that the setup could enable significant control, including the ability to freeze tokens.
The proposal also responds to recent concerns about WLFI’s treasury activities and market performance. The WLFI fell to a novel all-time low on Saturday, just days after wallets associated with the project used billions of tokens as collateral to lend out about $75 million in stablecoins.
Warehouse: Singapore Isn’t a ‘Crypto Hub’ – It’s Something Better: StraitsX CEO
