WLFI proposes 62.28B token vesting, up to 4.52B burn
WLFI proposed vesting for 62.28B locked tokens: early backers face a 2-year cliff then 2-year linear vest; founders and team can opt into a 2-year cliff then 3-year linear; up to 4.52B may be burned.
World Liberty Financial posted a governance proposal on Wednesday to place 62.28 billion locked WLFI tokens under new multiyear vesting schedules and to allow a potential burn of up to 4.52 billion tokens.
The proposal sets a two-year cliff for early backers, after which those allocations would vest evenly over a subsequent two-year period. Allocations for founders, team members, advisers and partners would also face a two-year cliff, but those holders may opt into a three-year linear vest instead of the two-year schedule. The draft specifies that holders who decline the new terms will remain locked indefinitely.
The proposed burn is limited to 4.52 billion WLFI tokens, equal to 10% of the combined allocation for founders, team members, advisers and partners, according to the proposal. WLFI’s document frames the changes as a formal phased unlocking plan to limit large near-term increases in circulating supply.
The governance posting follows an April 10 notice from the project that it would introduce a proposal after some token holders threatened legal action to gain access to locked holdings. Early WLFI buyers have criticized prolonged lockups and limited liquidity.
Justin Sun, founder of Tron and an investor in WLFI, criticized the platform this week for a lack of transparency and alleged prior governance votes were dominated by a small number of wallets. WLFI pushed back against Sun’s remarks and indicated it may pursue legal action.
On-chain records show wallets tied to the project used WLFI tokens as collateral to borrow about $75 million in stablecoins. The WLFI token fell to a new all-time low on Saturday in on-chain market data associated with the project.
The governance proposal is open for stakeholder consideration. If adopted, it would set new unlock schedules for the 62.28 billion locked tokens, authorize the optional burn tied to founder and team allocations, and leave tokens held by non-consenting addresses locked until those holders accept the terms or governance provides an alternative.
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