- The token price for World Liberty Financial (WLFI) fell 18% following a controversial governance vote.
- The proposal, which passed within 15 minutes, will lock 17 billion early supporter tokens for two more years, followed by a two-year gradual vesting period.
- Community members criticized the process as coercive and potentially rigged, noting four large voters controlled nearly 40% of the total votes.
- Tron CEO Justin Sun is suing WLFI for blacklisting his tokens, preventing him from voting on the proposal.
- WLFI was recently linked to a project involving individuals sanctioned for involvement in overseas crypto scams.
The price of World Liberty Financial‘s WLFI token plunged 18% after a rapid governance vote extended its token lock-up, a move immediately criticized as undemocratic. The proposal passed with 6.6 billion votes in just 15 minutes, achieving a 148% quorum.
However, scrutiny of the vote data revealed a stark imbalance. Meanwhile, the largest four “Yes” voters together held 2.5 billion tokens, representing almost 40% of the entire vote.
The approved plan will keep 17 billion early supporter tokens locked for another two years, followed by a two-year linear vesting period. Consequently, some investors must wait four more years for full access to their holdings.
The vote mechanics were widely condemned as coercive, as WLFI stated holders voting “No” would see tokens locked indefinitely. On social media, users noted the process felt predetermined and mocked its “community governance” claim.
Adding to its troubles, World Liberty Financial faces a lawsuit from former supporter Justin Sun. Sun said he could not vote because the firm froze his early investor tokens.
The company also faces reputational damage from a recent partnership. It was linked to a crypto firm overseeing a resort project led by two individuals sanctioned by the U.S. for alleged scam syndicate involvement.
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