The proposal comes after prolonged pressure from early buyers of WLFI tokens.
WLFI Token News
World Liberty Financial published a governance proposal on Wednesday covering 62.28 billion locked WLFI tokens. The proposal introduces new multiyear vesting schedules for different holder categories. It also includes an option to burn a portion of the supply held by insiders.
Early supporters holding locked tokens would face a two-year cliff before any release begins. After that cliff, tokens would vest linearly over an additional two years. Founders, team members, advisers and partners would face a two-year cliff followed by a three-year linear vest, but only if they choose to accept the new terms.
Holders who decline the new vesting structure would remain locked with no defined release date. The proposal also allows for the burn of up to 4.52 billion WLFI tokens. That amount equals 10% of the total founder, team, adviser and partner allocation.
The proposal comes after prolonged pressure from early buyers of WLFI tokens. Those buyers had raised concerns about locked positions and limited access to liquidity. On April 10, the project said it would introduce this proposal after some holders threatened legal action.
The proposal follows a difficult period for the platform's market performance. WLFI hit a new all-time low on Saturday. That drop came just days after wallets linked to the project used billions of tokens as collateral to borrow approximately $75 million in stablecoins.
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