Key Highlights
- WLFI experienced a nearly 14% decline when governance voting commenced on the 62 billion token unlock proposal
- The plan introduces a two-year cliff period before token distribution begins, then transitions to a lengthy vesting timeline
- Current voting shows 99.95% approval, while social media platforms display significant community opposition
- Justin Sun of Tron and Moonrock Capital’s Simon Dedic have openly opposed the governance measure
- Token holders who abstain from voting face permanent lock-up of their allocations
World Liberty Financial experienced a sharp price decline on Wednesday as voting commenced on a governance measure affecting more than 62 billion tokens through newly structured vesting timelines.
The governance measure received its initial submission on April 15, with official voting beginning this Wednesday. The voting window extends through May 7, requiring 1 billion tokens for quorum.
Current tallies show 99.95% support, with approximately 6 billion tokens backing the proposal against 3.2 million in opposition. The quorum threshold has been satisfied.
WLFI traded at $0.064 during the assessment period, representing a decline from the pre-vote level of $0.073. The token reached an all-time peak of $0.33 and has fallen 72.8% from that high.
The governance plan encompasses approximately 45 billion tokens allocated to founders, advisors, and early collaborators, featuring a two-year cliff followed by three-year linear distribution. Another segment of up to 17 billion tokens designated for early protocol participants includes a two-year cliff with two-year vesting.
Social Media Opposition Grows
While on-chain voting demonstrates overwhelming approval, sentiment across X reveals substantial resistance. Numerous pre-sale participants perceive the vesting restructure as a fundamental change to original terms, particularly after waiting over a year since the project’s debut.
“What’s this 2 year cliff 2 year vesting bullshit? I don’t understand how early investors gotta wait up to 4 years to get their full allocation. Dirty work!” one commenter wrote on X.
Simon Dedic, who founded Moonrock Capital, drew comparisons between the proposal and exit schemes, raising questions about the two-year unlock timeline coinciding with the balance of Donald Trump’s presidency.
Tron founder Justin Sun, among WLFI’s most significant investors, described the proposal as among the “most absurd” he has encountered. Sun currently faces legal proceedings with World Liberty following the team’s decision to freeze his token allocation and restrict his governance participation.
Potential Token Reduction
Should the measure pass, roughly 10% of tokens designated for the founding group and investors may undergo permanent removal from circulation, totaling approximately 4.5 billion tokens.
World Liberty stated the framework aims to replace unlimited token freezes with transparent, time-bound vesting structures, ensuring tokens remain with participants “genuinely committed” to long-term project success.
The proposal specifies that token holders who decline to accept the revised vesting parameters will face indefinite lock-up of their allocations.
Around 25 billion WLFI tokens found buyers during public presale phases from the 100 billion total supply. Pre-sale participants currently retain ownership of roughly 17 billion tokens from those rounds.
