The post WLFI Faces Fresh Scrutiny Over New Governance Proposal appeared on BitcoinEthereumNews.com. WLFI investors may lose governance voting rights unless theyThe post WLFI Faces Fresh Scrutiny Over New Governance Proposal appeared on BitcoinEthereumNews.com. WLFI investors may lose governance voting rights unless they

WLFI Faces Fresh Scrutiny Over New Governance Proposal

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  • WLFI investors may lose governance voting rights unless they stake the only 20% of tokens unlocked.
  • The staking proposal requires a 180-day lockup for a 2% annual yield.
  • WLFI has fallen from an ATH near $0.46 to around $0.09-$0.10, a drop of more than 75%.

World Liberty Financial (WLFI), the crypto project linked to the family of US President Donald Trump, is again under scrutiny after a new governance proposal raised concerns among investors.

The project raised more than $550 million from investors with the promise that early token holders would help guide the platform’s future decisions. However, the latest governance proposal could reduce the voting power of those early investors unless they agree to lock up the only tokens they can currently sell.

The proposal targets roughly 20% of WLFI tokens that are already unlocked and tradable. Under the plan, these tokens would lose their governance voting rights unless holders stake them for at least 180 days.

In return, investors would receive a 2% annual yield paid in WLFI tokens, though the rate can be changed by the project team.

Staking requires investors to lock their tokens, meaning they cannot sell them during the staking period.

Unlock Timeline Remains Unclear

The proposal creates a difficult choice for investors. Governance votes include decisions on when the remaining 80% of locked tokens will be released.

This means investors must lock their tradable tokens if they want a stronger voice in decisions about unlocking the rest of their holdings.

In most crypto projects, token unlock schedules are announced before or during the initial token sale. These schedules tell investors when locked tokens will become tradable. On the other hand, WLFI has not published such a timeline.

More than a year after the first token sale, about 80% of tokens held by early outside investors remain locked with no official release schedule.

Price Decline and Liquidity Pressure

WLFI’s market performance has also raised concerns.

The token after launch reached an ATH of around $0.46, and within days it dropped below $0.24, continuing a steady decline across exchanges.

By March 8, 2026, the token was trading between $0.09 and $0.10, representing a drop of more than 75% from its earlier levels.

Liquidity limits have made the situation harder for investors. Early buyers were allowed to sell only 20% of their tokens, while the remaining 80% remain restricted under project rules. Some investors say this structure makes it difficult to exit positions during market declines.

Related: WLFI Expands Into Forex With World Swap Launch

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Source: https://coinedition.com/wlfi-faces-scrutiny-over-new-proposal-that-could-limit-investor-voting-rights/

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