Proposal would burn 4.523B WLFI (10% of affected allocations) and reassign ~62.28B locked WLFI into longer vesting: early supporters get a 2‑year cliff + 2‑year linear release; founders/team/advisers face a 2‑year cliff + 3‑year linear vest if they opt in; burn executed as soon as vote passes. Context: low governance participation (~23% of locked supply affected), prior votes saw 2.7–11.1B WLFI turnout, wallets used billions of WLFI as collateral to borrow ~$75M in stablecoins and the token hit a new low amid legal threats and public criticism (e.g., Justin Sun). Crypto/DeFi impact: move aims to reduce supply uncertainty and signal tokenomics improvement (token burn + clearer vesting) but execution risk and governance strain raise transparency, liquidity and control concerns for price and adoption.

Bearish

Predictions Markets

See what traders are focused on

View analytics →

World Liberty Financial has put 4.52 billion WLFI tokens on the table for an immediate burn if a new unlock plan passes, a move tied to the founder, team, adviser and partner pool.

The same proposal would also shift 62.28 billion locked WLFI tokens into longer vesting schedules, giving early supporters a two-year cliff followed by a two-year linear release, while the founder group would face a two-year cliff and a three-year linear vest if they opt in.

A Wider Supply Reset

The governance page says the burn would happen as soon as the vote clears, and holders who do not accept the new terms would stay locked. Early supporters would keep their full allocation under the revised schedule, but their tokens would not start unlocking until year 2 after passage.

Every advisor, institution, partner, founder, and team member locked token — all 45,238,585,647 WLFI — is assigned to a 2-year cliff with a 3-year linear vest upon opting in, and subject to a 10% burn upon doing so.

Up to 4,523,858,565 WLFI permanently destroyed.

This is the…

— WLFI (@worldlibertyfi) April 15, 2026

WLFI frames the proposal as a way to replace open-ended uncertainty with a fixed timeline for release. The plan also draws a line between user groups. Early supporters would get a four-year distribution path with no burn attached. Founders, team members, advisers and partners would face a stricter setup, with the burn applied only to their allocation and the rest released over a longer period.

The proposal says that structure is meant to create a clearer picture of future supply and governance.

According to reports, the change comes after pressure from buyers who have waited on liquidity for months. It was said that some holders had threatened legal action, while Tron founder Justin Sun criticized the project’s transparency and questioned whether earlier votes were concentrated in a small number of wallets. WLFI then reportedly threatened to sue Sun.

I have always been an ardent supporter of President Trump and his crypto friendly policy.

As an early supporter who invested heavily in World Liberty Financial, I did so because I believed in the vision that was presented to the public: a decentralized finance platform that…

— H.E. Justin Sun (@justinsuntron) April 12, 2026

Governance Under Strain

The proposal lands at a tense moment for the project. Wallets linked to WLFI reportedly used billions of tokens as collateral to borrow about $75 million in stablecoins, and the token later hit a new low.

The governance page also shows that WLFI has already passed six proposals, with participation ranging from 2.7 billion to 11.1 billion WLFI, and says active voting has reached only about 23% of the locked supply affected by this plan.

That detail matters because the new vote is not just about supply. It is also about control, timing and who gets to decide when the token starts moving.

The proposal says the current setup leaves too much uncertainty around locked tokens, and argues that the network has grown enough to support a clearer schedule.

Featured image from Meta, chart from TradingView

Read the article at NewsBTC