WorldLibertyFi Unlocks 62 Billion WLFI Proposal Passed with 99.5% Support
The governance proposal of WorldLibertyFi, supported by the Trump family, has been approved with a 99.5% approval rate to unlock 62 billion WLFI tokens.
The proposal sets a 2-year lock-up period and 5-year vesting for insider tokens, while immediately destroying about 10% of the 4.5 billion insider holdings. The top four wallets control about 40% of the voting rights.
Early supporters holding 17 billion tokens will have a 2-year lock-up period and 2-year vesting without the need for destruction.
Source: Public Information
ABAB AI Insight
WorldLibertyFi previously launched the WLFI governance token with direct endorsement from the Trump family, relying on early sales promoted by Trump sons Don Jr., Eric, and Barron. This proposal follows the project's use of 5 billion of its own tokens as collateral to borrow $75 million in stablecoins, aimed at alleviating the "governance suspension" and pushing for structural adjustments, as insiders faced indefinite lock-up pressures.
In terms of capital pathways, the Trump family distributes tokens to founders, teams, and advisors through World Liberty Financial. The proposal forces insiders to accept a 10% destruction in exchange for gradual liquidity, while mobilizing community voting resources. The motivation is to maintain project control during Trump's term and gradually release family-related assets after the term ends, avoiding concentrated sell-offs that could trigger regulatory or market backlash.
Similar to Justin Sun's previous public criticism of the proposal as "tyranny" and accusations of power concentration, or other Trump-related projects like Truth Social's early token structure adjustments, WorldLibertyFi is currently transitioning from early speculation to long-term DeFi governance, focusing on locking in insider interests during Trump's political cycle.
Essentially, this represents capital concentration: by concentrating high voting rights in the top four wallets and implementing a forced vesting mechanism, the project redirects the interests of dispersed early buyers towards insider control, utilizing the low participation rate in governance voting (previously only 23%) to allow Trump family-related entities to maintain actual dominance over platform pricing and capital flow during sensitive regulatory periods.