World Liberty Financial (WLFI), a DeFi project backed by President Donald Trump’s family, has launched voting on the controversial 4-year token unlock proposal.
In an April 29 statement, the project said voting for the proposal was now underway. The team noted that the process would conclude by May 6, calling it “the most significant governance proposals in WLFI history.”
For perspective, approximately 75 billion WLFI tokens are currently locked. If the proposal passes, 62.3 billion WLFI tokens from this locked reserve will not come to market for at least two years.
The stakes belong to two groups: the founders, the team and the advisors on one side. The second group includes early supporters who purchased during the pre-sale period.
The first camp is allocated 45 billion WLFI, a mandatory 10% burn (4.5 billion tokens), and will face a 2-year cliff, followed by a 3-year vesting period. In other words, they will have full access to their token by 2031.
The second camp, controlling 17 billion tokens, will only fully access its reserve by 2030, after a two-year period followed by a two-year period of gradual release.
WLFI moves forward despite Justin Sun’s lawsuit
Those who are unhappy with the proposal will likely remain so “indefinitely,” as the draft says,
Holders who do not positively accept remain locked out indefinitely under existing terms, subject to any future unlock proposals.
Some early investors, like Tron founder Justin Sun, initially called the unlocking proposal “global tyranny” and extortion. He has since taken the company to court.
Sun was a major investor in the project, but its tokens were blacklisted, even denying it the right to vote on the proposal.
According to the team, however, Sun’s tokens were blacklisted due to his misconduct, with Eric Trump dismissing Sun’s lawsuit as “”ridiculous.’
Yet the Trump-backed project continues to face serious ethical problems. According to the Wall Street Journal (WSJ) reportthe project announced a partnership with AB DAO, a sanctioned entity linked to fraudulent pig butchery networks.
Meanwhile, the price of WLFI fell by 14% following the voting update. In fact, this is a new all-time low of 0.062. It is unclear whether final adoption of the proposal will lower it.
Final summary
- WLFI has moved forward with its controversial token unlocking plan that will allow full access by 2030 or 2031.
- Amid concerns over governance and ethical oversight, WLFI price fell 14% to a new all-time low of $0.062.
