WLFI Unveils 62B Token Vesting Plan With 10% Burn After Holder Revolt

Ted Hisokawa Apr 15, 2026 14:08

World Liberty Financial proposes multi-year vesting schedules for 62.28 billion locked WLFI tokens, with conditional burn mechanism following legal threats from early buyers.

WLFI Unveils 62B Token Vesting Plan With 10% Burn After Holder Revolt

World Liberty Financial dropped a governance proposal Wednesday that would restructure 62.28 billion locked WLFI tokens under extended vesting schedules—a direct response to mounting pressure from early supporters who threatened legal action over indefinite lockups.

The Trump-linked DeFi platform's proposal splits token holders into two camps. Early supporters holding locked tokens would face a two-year cliff followed by two years of linear vesting. Founders, team members, advisers, and partners get slightly different terms: a two-year cliff plus three years of linear vesting, but only if they opt in.

Here's the kicker—those who don't accept the new terms stay locked indefinitely. No exit, no timeline.

Burn Mechanism Targets Insider Allocations

The proposal includes a potential burn of up to 4.52 billion WLFI tokens, representing 10% of the founder, team, adviser, and partner allocation. This burn applies exclusively to insiders who opt into the new vesting structure.

With WLFI currently trading at $0.079—down 3.71% in the past 24 hours—the token sits at a $2.51 billion market cap. The price hit an all-time low on April 11, just days after project-linked wallets used approximately 5 billion tokens as collateral to borrow around $75 million in stablecoins through Dolomite.

That borrowing activity sparked liquidation fears across the holder base. The project has since begun repaying, with $25 million in USDS returned by April 10.

Justin Sun Escalates Governance Concerns

The vesting proposal arrives amid a public spat with Tron founder Justin Sun, who invested $30 million in WLFI. On April 13, Sun alleged that previous governance votes were dominated by a small number of wallets with minimal meaningful participation—essentially calling the decentralized governance theater.

WLFI responded by threatening to sue Sun.

Sun didn't back down. The same day, he urged the platform to disclose who controls key wallets tied to its smart contracts, warning the current setup could allow significant control over the protocol, including the ability to freeze tokens.

What This Means for Holders

The 62.28 billion tokens affected represent a substantial portion of WLFI's 100 billion total supply. Original allocations designated 63% for public sale, 20% for founding team and advisors, and 17% for user rewards and community initiatives.

For early supporters holding the 17 billion token allocation, the math works out to potential unlocks beginning in April 2028, with full vesting by April 2030. Insider allocations wouldn't fully vest until 2031 under the new terms.

The proposal effectively kicks any meaningful supply increase down the road by at least two years—assuming it passes. Given the concentrated wallet concerns Sun raised, how that vote actually plays out remains an open question.

Governance voting details and timeline haven't been announced yet.

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