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- WLFI plans a phased token unlock through governance voting.
- Over 75% of tokens remain locked, fueling investor frustration.
- Treasury borrowing and governance decisions raise transparency concerns.
World Liberty Financial, a decentralized finance (DeFi) platform linked to the Trump family, is preparing to introduce a governance proposal that could reshape how early investors access their WLFI tokens. The proposal, expected next week, outlines a phased unlock schedule rather than an immediate release—an approach that has already stirred mixed reactions among token holders.
The move comes amid growing pressure from retail investors who have waited over a year for clarity on token liquidity.
Phased Unlock Proposal Aims for Gradual Release
According to World Liberty Financial, the proposed plan will introduce a structured vesting timeline, allowing WLFI tokens to be released in stages. The proposal will first be opened for community discussion before proceeding to a formal vote.
This approach signals a cautious strategy. Instead of flooding the market with unlocked tokens, the platform aims to manage supply over time—potentially reducing volatility and aligning long-term incentives.
Currently, only about 24.67% of WLFI’s total 100 billion token supply has been unlocked, while the remaining 75.33% stays restricted. For early buyers, access to tokens remains tied to governance decisions, limiting immediate liquidity.
Investor Frustration Grows Over Extended Lockups
Despite the planned proposal, frustration among early WLFI investors is intensifying. Many retail buyers entered the token sale with the understanding that unlock timelines would be determined through governance after a minimum waiting period.
That threshold—set at 12 months—has already passed, with the token sale dating back to October 2024. Now, roughly 18 months later, a large portion of holdings remains inaccessible.
Some investors have taken their concerns public, criticizing the prolonged lockups and lack of liquidity. A few have even hinted at legal action, claiming the delays have negatively impacted their positions. While reports of formal lawsuits have surfaced, these claims remain unverified.
Governance Decisions and Treasury Activity Under Scrutiny
The debate over WLFI’s tokenomics extends beyond unlock schedules. Earlier governance changes introduced a six-month lock-up rule for certain token transfers, further tightening restrictions.
At the same time, onchain data has raised additional questions. World Liberty Financial’s treasury reportedly borrowed around $75 million in stablecoins using WLFI tokens as collateral. This activity has drawn scrutiny from community members, with some questioning how treasury funds are being managed.
These developments highlight broader concerns about transparency and governance in DeFi projects, particularly those handling large investor funds.
Also Read: Trump Family’s World Liberty Financial Burns 47 Million Tokens as WLFI Price Plummets
The upcoming governance vote could mark a turning point for World Liberty Financial. A phased unlock may help stabilize the token economy, but it must also address investor concerns around fairness and access.
As the community prepares to weigh in, the outcome will likely shape both WLFI’s market dynamics and its credibility in the increasingly competitive DeFi landscape.
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.
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