Key Takeaways
- World Liberty Financial’s WLFI token declined approximately 14% following the launch of a governance vote concerning 62 billion tokens
- The measure introduces a two-year cliff period before any tokens become available, with subsequent multi-year vesting
- While 99.95% of cast votes support the measure, substantial criticism has emerged across social platforms
- Justin Sun, Tron’s founder, and Simon Dedic from Moonrock Capital have openly condemned the initiative
- Token holders who abstain from voting face indefinite token lockup
World Liberty Financial witnessed a significant price decline of nearly 14% on Wednesday following the activation of a governance vote that would subject more than 62 billion tokens to extended vesting periods spanning multiple years.
The measure was initially introduced on April 15 and became active for community voting on Wednesday. The voting window extends through May 7, requiring a minimum of 1 billion tokens to reach quorum.
Current data shows 99.95% approval among voters, with 6 billion tokens supporting the measure and merely 3.2 million opposing. The minimum participation threshold has been satisfied.
WLFI traded at $0.064 during this report, representing a drop from $0.073 recorded before voting began. The digital asset previously reached a peak of $0.33 and has since declined 72.8% from its market debut.
The initiative encompasses approximately 45 billion tokens allocated to founders, advisors, and initial partners, requiring a two-year cliff followed by three years of linear vesting. An additional 17 billion tokens designated for early protocol participants follow a two-year cliff with two-year vesting.
Investor Outcry Intensifies
Notwithstanding overwhelming voting approval, sentiment on X has been predominantly critical. Numerous pre-sale participants perceive the revised vesting framework as deceptive, particularly after waiting over twelve months since the project’s inception.
“What’s this 2 year cliff 2 year vesting bullshit? I don’t understand how early investors gotta wait up to 4 years to get their full allocation. Dirty work!” one commenter wrote on X.
Simon Dedic, founder of Moonrock Capital, drew parallels between the proposal and fraudulent schemes, raising concerns about why the two-year unlock timeline corresponds with the remaining duration of Donald Trump’s presidency.
Tron founder Justin Sun, among WLFI’s most substantial investors, characterized the proposal as among the “most absurd” he had encountered. Sun is presently engaged in litigation with World Liberty following the platform’s decision to freeze his holdings and restrict his governance participation.
Potential Token Reduction
Should the measure pass, roughly 10% of tokens reserved for the founding group and early investors may be permanently removed from circulation, totaling approximately 4.5 billion tokens.
World Liberty maintains the framework aims to replace indefinite token restrictions with transparent, time-bound vesting schedules, ensuring tokens remain with participants “genuinely committed” to long-term success.
The proposal further specifies that participants who decline to accept the revised vesting conditions will face permanent token lockup.
Approximately 25 billion WLFI tokens were distributed through public presale phases from a total supply of 100 billion. Pre-sale participants currently retain roughly 17 billion of those tokens.
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