Key Highlights
- WLFI has opened a governance vote to determine the handling of over 62 billion locked tokens.
- Founders and teams face stricter rules with token burns, while early supporters keep all their tokens with no burn.
- The proposal requires significant participation and will remain open for seven days.
World Liberty Financial (WLFI), the crypto venture associated with U.S. President Donald Trump, has launched a seven-day governance vote that could change how a large portion of its tokens are released and removed from supply.
According to the project’s official post on X, the vote has started today, and it is fully done on-chain, meaning token holders vote directly using the blockchain system.
The proposal centers on approximately 62.28 billion locked WLFI tokens that are currently not in circulation. If approved, these tokens would remain locked for at least two additional years. The vote requires a quorum of 1 billion WLFI tokens to be valid.
WLFI described the proposal as one of the most significant governance decisions in its history.
Different rules for different groups
The proposal is split into different groups of participants. For founders, team members, advisors, and partners, up to 45,238,585,647 WLFI tokens would move into a two-year waiting period, followed by a three-year linear vesting schedule.
This means they cannot access their full tokens immediately, even after waiting. If they agree to these terms, up to 4,523,858,565 tokens could be permanently destroyed, which would reduce the total supply. WLFI described this as the strictest option under consideration.
Early supporters who purchased locked WLFI tokens are assigned up to 17,043,666,558 tokens that would shift into a two-year cliff and then a two-year vesting period, while retaining full allocation and avoiding any burn if they accept the terms.
WLFI also said that holders who do not actively accept the new conditions would remain under existing restrictions.
Governance and broader context
The vote will remain open for seven days, and sufficient participation is required to meet the quorum threshold and finalize the outcome.
WLFI operates as a decentralized finance (DeFi) protocol with both a governance token (WLFI) and a U.S. dollar-pegged stablecoin, USD1. The project focuses on building infrastructure that connects crypto with real-world payments.
Recently, WLFI also integrated MovaLab into its supernode network to help scale infrastructure and increase adoption of USD1 across AI and payment systems.
The outcome of the vote will determine how a substantial portion of WLFI’s token supply is managed, potentially affecting supply dynamics and long-term distribution.
Also Read: Meta Introduces Stablecoin Payments for Creators in Pilot Markets
Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.
