World Liberty Financial has proposed unlocking 62.28 billion WLFI tokens through a new governance plan introducing multi-year vesting schedules and optional token burns to address liquidity concerns.
The proposal outlines a two-year cliff followed by a two-year linear vest for early supporters, while founders, team members, advisers and partners would face a two-year cliff and three-year vest if they opt in.
It also includes a potential burn of up to 4.52 billion tokens, equivalent to 10% of insider allocations, while holders who reject the new terms would remain locked indefinitely.
The plan formalises a phased token release strategy aimed at preventing sudden supply shocks while responding to mounting pressure over delayed liquidity access.
The proposal follows backlash from early investors, including threats of legal action, alongside criticism of governance practices and transparency within the platform.
Scrutiny intensified after Justin Sun criticised wallet concentration and governance participation, prompting a legal threat from the platform in response.
Concerns have also grown after WLFI hit a new all-time low and project-linked wallets used billions in tokens as collateral to secure roughly $75 million in stablecoin loans.
At the time of reporting, World Liberty Financial price was $0.08069.