World Liberty Financial (WLFI) has been at the center of scrutiny since Justin Sun filed a lawsuit against them for freezing his portfolio. Sun is among WLFI’s largest early investors.
Such activities, in addition to the team’s constant sales, caused the token to fall to an all-time low (ATL) on the charts.
However, the adoption of a recent proposal triggered an instant price reversal this week. Hence the question: will the altcoin maintain its new uptrend?
What does the proposal include?
According to World Liberty Financial, its largest governance proposal in history passed with 99.9% voting YES.
To be more precise, 11,537 wallets participated in restructuring and unlocking over 62 billion WLFI tokens. The votes reached 11.2 billion, exceeding the required quorum of 1 billion by eleven times.
The proposal planned to transfer 17 billion WLFI tokens from early investors to long-term acquisition. Furthermore, more than 45 billion WLFI allocated to the team and founders would be restructured.
Simply put, the proposal was about the tokenomics of supply. Around 10% of tokens allocated to insiders would be burned permanently – a step to begin reducing the circulating supply. This would create a shortage, which could drive up prices if demand is there.
The remaining supply would be acquired for years, with a cliff release after 2 years. Therefore, gradual unlocks would follow.
WLFI price reverses from its ATL
The adoption of the governance proposal was positive for WLFI’s price action, which instantly reversed from its ATL of $0.0512. The altcoin has been trading in the red zone since the crypto entered a bear market in Q4 2025.
At the time of writing, the Choppiness Index showed a reading of 42, indicating that the altcoin was slowly losing momentum. If anything, Chaikin Money Flow (CMF) appears to be increasing – evidence that traders may be moving capital into the altcoin.
To maintain this uptrend, the altcoin would need to surpass the resistance levels of $0.0744 and $0.0824. This would set a precedent for a rally towards the consolidation of the range between $0.09 and $0.10.
Conversely, these resistance levels can slow down this price appreciation.
Why isn’t everything going well?
Although everything looks positive after the adoption of the governance proposal, the team’s wallet continues to distribute WLFI tokens on centralized exchanges (CEX).
More than $50 million worth of WLFI has been sold since the massive $100 million WLFI sale six months ago. On top of that, the team received a $40 million stablecoin loan against $200 million WLFI collateral.
These activities sparked “ruining” claims, although the team denied them. Therefore, the aforementioned proposal does not guarantee that the uptrend will be sustained. Especially since underlying problems remain.
Final summary
- WLFI’s largest governance proposal passed with 99.9% YES votes.
- WLFI price instantly reversed from its ATL, but it will be difficult to maintain the uptrend.
