WLFI Jumps After 99.9% Vote Passes — Can the Rally Continue?

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• WLFI surged after a governance proposal received near-unanimous approval.
  
• The proposal restructures insider holdings and permanently burns part of the supply.
  
• Ongoing team token sales continue to raise concerns about long-term sustainability.

The native token of World Liberty Financial, WLFI, staged a sharp recovery this week after the project’s largest governance proposal overwhelmingly passed. The vote comes at a critical moment for the token, which recently fell to an all-time low amid mounting criticism surrounding insider activity and token sales.

According to the project, more than 11,500 wallets participated in the governance vote, with 99.9% of voters supporting the proposal. The measure focused heavily on restructuring WLFI’s token supply and adjusting vesting schedules tied to insiders, founders, and early investors.

The proposal appears to have restored some short-term confidence in the market, triggering an immediate bounce in WLFI’s price after weeks of heavy downside pressure.

Proposal Targets Supply Concerns

A major part of the approved plan involves reshaping the project’s tokenomics. Roughly 17 billion WLFI tokens held by early investors will now be placed under long-term vesting conditions. In addition, over 45 billion tokens tied to the founding team and insiders will also face restructuring.

The proposal further introduced a permanent burn mechanism affecting around 10% of insider allocations. By reducing part of the circulating supply, the project aims to create greater scarcity over time.

Remaining insider holdings will stay locked for years, with the first major unlock expected after a two-year cliff period. Supporters argue the move could ease fears of aggressive token dumping while creating a more stable long-term supply structure.

WLFI Price Faces Key Resistance Levels

Following the announcement, WLFI rebounded strongly from its ATL near $0.051. Technical indicators suggest traders have started rotating capital back into the token, with buying pressure gradually increasing.

However, momentum remains fragile. WLFI still faces important resistance near the $0.074 and $0.082 price zones. A successful breakout above those levels could open the door for a broader recovery toward the $0.09–$0.10 range.

At the same time, weakening trend momentum indicators suggest the rally could lose steam if buyers fail to maintain control.

Ongoing Token Sales Continue to Raise Questions

Despite the positive reaction to the governance vote, concerns surrounding the project have not disappeared.

WLFI has faced increased scrutiny after Justin Sun reportedly filed legal action tied to a frozen wallet dispute. The controversy intensified existing criticism around insider token movements and exchange deposits.

Also Read: WLFI Scandal: $75M Secret Move Leaves Investors Trapped in Losses

Blockchain observers also noted that wallets associated with the team continue distributing tokens to centralized exchanges. Reports indicate more than $50 million worth of WLFI has been sold in recent months, adding to concerns about sustained selling pressure.

The project has denied claims that operations are “falling apart,” but some investors remain cautious. For now, the governance proposal has improved sentiment, though the long-term direction of WLFI may still depend on whether the team can rebuild trust and reduce fears surrounding insider activity.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.