Decentralized finance platform World Liberty Financial said Friday it will introduce a governance proposal next week to establish a phased unlock schedule for WLFI tokens held by early retail investors.
The Trump family-linked project said the proposal will first be opened for community feedback before moving to a formal vote. It emphasized that the plan does not involve an immediate full unlock, but instead outlines a structured, long-term vesting approach that would release tokens gradually over time.
Currently, WLFI tokens held by early buyers remain largely locked, with transferability dependent on governance-approved unlocks. Data from Tokenomist shows that about 24.67% of the total 100 billion WLFI supply has been released, while roughly 75.33% remains locked or subject to future decisions.
The upcoming proposal could determine when early investors gain access to liquidity, as WLFI’s primary utility remains tied to governance participation. It follows growing dissatisfaction among some holders, who have criticized extended lockups and, in some cases, threatened legal action.
These concerns build on earlier governance decisions. On March 16, WLFI holders approved a proposal introducing a six-month lock-up period for certain transfers, marking one of the first major changes to the project’s token transfer rules.
Retail buyers push back on prolonged WLFI lockups
World Liberty Financial’s early sale materials stated that WLFI tokens would be non-transferable and could remain locked indefinitely, with any future unlock subject to a governance vote no sooner than 12 months after the token sale—and with no guaranteed timeline.
That 12-month window has already passed. WLFI’s public sale began around mid-October 2024, making the upcoming proposal roughly 18 months after the initial launch. The project raised at least $550 million across two funding rounds.
Some self-identified presale buyers have since voiced frustration, noting that most of their holdings remain locked even as portions of the broader token supply have become transferable.
At least one such buyer claimed to have filed legal notices and to be pursuing action in the United States and the Netherlands against World Liberty Financial and its backers, though this has not been independently verified.
Onchain borrowing raises further concerns
Additional concerns have emerged around the project’s treasury activity. One community member questioned the use of funds in a post on X, pointing to onchain data showing that World Liberty Financial borrowed roughly $75 million in stablecoins from Dolomite, using WLFI tokens as collateral.
