World Liberty Financial (WLFI) is a decentralized finance protocol linked to the Trump family that has recently proposed a new governance plan to lock over 6.22 billion WLFI tokens under a structured vesting schedule and permanently remove up to 450 million tokens. This plan marks a significant shift in the management of allocations for insiders and early supporters, aimed at enhancing transparency and aligning with the project's long-term incentives.
According to the proposal, all internal allocations, including tokens held by founders, team members, advisors, and institutional partners, will be transferred to a two-year lock-up period (cliff period), followed by a three-year linear vesting period. This portion of the plan involves a total of 4.52 billion WLFI tokens.
Participants in these categories must agree to implement a strict 10% token burn, which could result in the destruction of up to 450 million WLFI tokens, given the current total supply of 1 billion. This measure aims to reduce circulating supply while incentivizing long-term participation from the project's core stakeholders.
Early supporters, holding approximately 1.7 billion WLFI, will face a two-year lock-up period (cliff period), followed by a two-year vesting period. Notably, their tokens will remain intact without the need for burning, aiming to balance the protection of supporter value with encouragement for ongoing participation.
However, many early holders have already experienced about 550 days of waiting since WLFI's launch in October 2024, and now face an additional four-year waiting period to gain full access. All affected parties must choose to participate within 10 days; otherwise, their tokens will be indefinitely locked under previous terms.
World Liberty Financial claims to be an emerging player in the DeFi News space, developing products around governance, lending, and staking. The protocol's governance team noted that approximately 77% of the currently locked supply is associated with inactive accounts, emphasizing the need to filter out truly active participants among holders.
The WLFI team stated in the proposal, “We believe this represents one of the strongest long-term governance alignment signals in DeFi News.”
This announcement comes at a challenging time for WLFI. Earlier this month, controversy arose when the protocol's treasury used approximately 500 million WLFI as collateral on the Dolomite lending platform to borrow around $75 million in stablecoins. This move pushed Dolomite's total locked value over half, putting pressure on liquidity for other participants.
Market performance has been volatile, with WLFI trading at $0.07987 at the last report, down 3% in 24 hours, and a staggering 82% drop from its peak of $0.46 in September 2025.
Opinions among governance forum members and discussions on social platforms are divided, with supporters arguing that this measure is an important step forward for WLFI.