World Liberty proposes phased WLFI token unlock after backlash

World Liberty Financial announced it will put forward next week a governance proposal to create a phased, long-term unlock schedule for WLFI tokens held by early retail buyers. The plan would release tokens in stages rather than make early-sale balances fully transferable at once. The proposal will be opened for community feedback before a formal vote.

Early-sale documents stated WLFI tokens were non-transferable and could remain locked indefinitely, with any future unlock requiring a governance vote no earlier than 12 months after the token sale and without a fixed timeline. WLFI’s public sale began in mid-October 2024, placing the proposal about 18 months after the sale.

Token supply records indicate about 24.67% of WLFI’s 100 billion tokens have been released, while roughly 75.33% remain locked or await future unlock decisions.

World Liberty raised at least $550 million from WLFI token sales across two funding rounds. Some self-identified presale buyers have complained publicly that most of their holdings remain restricted and have signaled plans for legal action. At least one buyer reported filing legal notices and pursuing claims in the United States and the Netherlands; those filings could not be independently verified.

On March 16, token holders approved a rule introducing a six-month lock-up for certain transfers, marking an earlier change to the transferability framework. The pending proposal would set a longer, staged timetable for early retail unlocks and allow community comment before a binding vote.

Onchain records show World Liberty’s treasury borrowed about $75 million in stablecoins from Dolomite using WLFI as collateral. Community posts questioned whether that borrowing affects treasury liquidity and the timing of token releases.