WLFI Targets 62 Billion Tokens in Lockup Plan

• 17.04B WLFI for early backers locked 2 years, then 2 years gradual unlock, full access by 2030.
• Team holds 45.23B WLFI; 10% to be burned, the rest unlocks over 5 years after 2 years delay.
• WLFI hit ATL of $0.0771; supply cut proposal aims to ease sell pressure and stabilize price. 

World Liberty Financial (WLFI) has introduced a new governance proposal that extends token lock periods across the ecosystem. The vote will run for seven days, with a quorum requirement of 1 billion WLFI and a simple majority needed for approval.

The proposal targets 62.28 billion WLFI in total. Early supporters hold 17.04 billion tokens, which will face a 2-year lock followed by a 2-year gradual unlock. Meanwhile, full access to these tokens changes to around 2030.

Founder, team, advisor, and partner allocations total 45.23 billion WLFI. Under the proposal, 10% of this supply, about 4.52 billion tokens, will be permanently burned on approval. The remaining 90% will unlock over five years, with a 2-year delay before any release begins.

Justin Sun Challenges Governance Model

Justin Sun has strongly criticized the proposal, calling it coercive and structurally flawed. His main argument focuses on the voting design.

Holders who reject the proposal risk having their tokens locked indefinitely, which removes a clear exit path. This creates pressure to vote in favor.

Sun also stated that some large holders, including himself with roughly 4% voting power, have been unable to participate due to token freezes. If accurate, this reduces opposition in the vote.

He further pointed to control mechanisms within the protocol. A 3-of-5 anonymous multisig and a separate guardian wallet can override decisions and blacklist addresses. This places final authority outside standard governance processes.

Identity requirements add another layer of concern as voters are required to complete verification and legal acknowledgments, while the controlling wallets remain anonymous.

The token burn is another point of concern. Sun added that the permanent removal of 4.52 billion WLFI reduces total supply but also eliminates holder value tied to those tokens.

Price Pressure Meets Supply Control

On the other hand, WLFI price hit an all-time low of $0.0771 on April 11. Within days, the proposal to tighten supply entered governance. The lower circulating supply reduces immediate sell pressure, aiming to stabilize the price in the short term.

However, liquidity remains restricted for investors. Early holders already had 80% of their tokens locked, and this proposal extends that timeline, pushing full liquidity access several years forward.

At the same time, WLFI borrowed $75 million against its own tokens. This allowed the project to extract liquidity while most holders could not sell. The firm later repaid $25 million, but the move triggered strong investor backlash.

Related: Crypto Clash: Justin Sun Questions WLFI’s True Governance Model