World Liberty Financial, a prominent name in decentralized finance (DeFi) and stablecoins with support from Donald Trump, has announced a major change in the lock-up policy for its governance token WLFI, aiming to increase transparency and sustainability.
New lock-up terms for governance tokens
According to World Liberty Financial’s statement, the company is proposing a shift from indefinite locking of the 62,282,252,205 WLFI governance tokens to a fixed-term unlock policy. Under this plan, team members, founders, advisors, and strategic partners will be unable to access or use their tokens for a strict two-year period. After this initial freeze, their tokens will become available through a linear vesting schedule that unfolds over the next three years, leading to full release after five years.
Eligible insiders, who currently hold a combined entitlement of 45,238,585,647 WLFI, will be mandated to burn 4.5 billion tokens—an amount equaling ten percent of the group’s total share—as a precondition for participating in the new policy. Anyone declining the offer will have their tokens remain locked with no end date.
A separate proposal affects early investors holding 17,043,666,558 WLFI in total. This group too will have no access to their tokens for two years, followed by gradual release over another two years—giving them full liquidity at the end of four years. Unlike insiders, however, these investors will not be required to burn any of their tokens.
Voting process and timeline
Enacting the proposal requires a quorum representing a minimum of 1 billion WLFI and approval by a majority of participating token holders. The voting period has been set for seven days. Those who wish to join the new unlock scheme after the feature becomes active will have a ten-day window to opt in.
The WLFI token was launched in September 2025. According to CryptoAppsy data, the token currently trades at $0.082, which marks a dramatic 75.1 percent fall from its all-time high of $0.33.
Platform expansion and Justin Sun dispute
This governance token overhaul comes as the WLFI team works to widen the project’s ecosystem and diversify platform features. Recent improvements include the launch of the USD1 stablecoin across multiple networks and new functions on the WLFI platform such as lending and borrowing capabilities.
Development efforts were recently overshadowed by a heated dispute with Justin Sun, founder of Tron. Sun alleged that an undisclosed blacklist function in WLFI’s smart contract could let the team unilaterally freeze wallets, restrict user rights, and seize assets. He further claimed his own wallet was frozen—following a $9 million WLFI transfer in September 2025—making him a victim of the very system he criticized.
WLFI’s management team has categorically denied Sun’s accusations, stating that Sun is trying to conceal his own questionable activities behind these allegations. The team noted that this matter will be taken to court. The controversy has become a hot topic within the WLFI community, sparking widespread debate and unrest.
If insiders choose to accept the token unlock proposal, they will be required to burn a total of 4.5 billion WLFI and have their remaining tokens remain completely inaccessible for two years, only to be gradually unlocked over five years.
The proposed unlock and token burn are aimed at addressing longstanding calls from investors for clear vesting structures, especially in light of the token’s sharp value decline over recent months.
As the community prepares to vote, the outcome could fundamentally reshape power dynamics within the platform and influence how other DeFi projects address insider lock-ups and token economics.
Market observers are watching closely to see if the planned token burn and new distribution schedule can stem the loss of investor confidence that has beset WLFI, or if additional measures will be required.
Whether this reset will be enough to turn fortunes around for WLFI, still reeling from a sizable price drop and high-profile disputes, remains to be seen as the community’s decision draws nearer.
