WLFI Token Unlock Plan Shifts to Gradual Release Following Investor Pushback
Following criticism from early investors, World Liberty has announced its WLFI token unlock proposal will incorporate community feedback ahead of an official vote, proposing a gradual vesting schedule instead of an immediate full release.
On Friday, World Liberty Financial, a decentralized finance (DeFi) platform, announced plans to introduce a governance proposal next week establishing a staged unlock timeline for WLFI tokens currently held by early retail purchasers.
The DeFi platform, which has connections to the Trump family, indicated the proposal will first undergo a period of community feedback before advancing to an official voting phase. The project clarified that the vote will focus on implementing a structured, long-term vesting framework that releases tokens gradually, rather than allowing for a complete, immediate unlock.
Early buyers of WLFI tokens continue to face significant restrictions, as transferability depends on governance-approved unlock mechanisms. Data from Tokenomist indicates that approximately 24.67% of the 100 billion WLFI token supply has been distributed, while around 75.33% continues to be locked or awaits future unlock determinations.
This proposal has the potential to establish when early purchasers will finally gain liquidity access to WLFI, a token whose utility is predominantly confined to governance functions. The announcement arrives amid growing public criticism from certain holders who are expressing frustration over the extended lockup periods and making threats of potential legal action.
These grievances build upon previous governance actions related to token transfer limitations. Token holders of WLFI voted in favor of a proposal on March 16 that instituted a six-month lock-up requirement for specific transfers, representing one of the initial formal modifications to the project's token transferability structure.
Retail buyers challenge prolonged WLFI lockups
According to World Liberty's initial sale documentation, WLFI tokens were designated as non-transferable and could potentially stay locked without a defined endpoint, with any future unlock requiring a governance vote that could only occur no sooner than 12 months following the token sale, and without any assured release schedule.
This 12-month benchmark has now been exceeded, given that WLFI's public token sale commenced approximately mid-October 2024, positioning the current proposal at roughly 18 months following the original sale. The organization secured a minimum of $550 million through WLFI token sales conducted over two separate funding rounds.
Several individuals identifying themselves as WLFI presale purchasers have voiced public dissatisfaction that the majority of their token holdings continue to be locked, despite portions of the overall token supply having gained transferability.
At least one individual claiming to be a buyer stated they had submitted legal notices and were actively pursuing claims both in the United States and the Netherlands targeting World Liberty Financial along with its financial backers. Cointelegraph was unable to independently confirm whether any formal lawsuit had actually been filed.
Cointelegraph contacted World Liberty Financial seeking commentary, but no response had been received at the time of publication.
Onchain borrowing activity adds to holder concerns
A community member expressed in a post on X that the project's borrowing activities have generated concerns among token holders, raising questions about the utilization of treasury funds. Blockchain data reveals that World Liberty Financial's treasury secured approximately $75 million in stablecoins through borrowing from Dolomite, utilizing WLFI as collateral for the transaction.