- The World Liberty Financial (WLFI) token dropped nearly 14% Wednesday amid a controversial governance vote.
- A proposal to lock over 62 billion tokens owned by insiders and early investors for a minimum of two years is nearing passage.
- The plan faces intense community criticism, with high-profile figures calling it a potential rug pull, even as 99.95% of votes favor it.
- The voting mechanism has also been criticized because tokens of non-voters would be locked indefinitely.
- WLFI’s price is down 72.8% since its market launch.
The native token of Trump-family-linked World Liberty Financial dropped nearly 14% on Wednesday as a contentious governance proposal went live for a community vote. The plan seeks to place over 62 billion WLFI tokens under new multiyear vesting schedules.
Voting runs until May 7, with 99.95% of current votes favoring the proposal. The quorum requirement of 1 billion tokens has already been met, according to available data. World Liberty Financial called this “one of the most significant governance proposals in WLFI history” in an X post.
However, the proposal has sparked strong criticism despite overwhelming voting support. Figures like Moonrock Capital founder Simon Dedic likened it to a rug pull, questioning the two-year unlock timeline. Tron founder Justin Sun, a significant holder, labeled it one of the “most absurd” proposals he’s seen.
Consequently, the majority of comments on the project’s announcement post were critical. The schedule involves a two-year cliff for early investors, followed by a two-year linear vest. Insiders like founders face a two-year cliff and a three-year vest.
The team stated this structure clarifies governance preferences and keeps tokens with committed participants. Meanwhile, WLFI trades at $0.06367, reflecting a 13.6% daily drop and a 72.8% decline since hitting the open market.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
