WLFI Moves To Unlock 62B Tokens While Tightening Supply With Burns

Source Newsbtc

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.

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.

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

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