WLFI Token Falls 13% as World Liberty Opens Controversial Unlock Vote

World Liberty Financial, the DeFi and stablecoin project associated with the Trump family, has officially opened voting on a controversial governance proposal to unlock 62 billion WLFI tokens, according to the proposal filing. The vote comes as the token has dropped 13% to $0.064 from $0.073 ahead of the governance vote kicking off, according to The Block’s price tracking.

Proposal Details

The governance proposal would replace current indefinite token locks with structured vesting schedules. According to the proposal, approximately 45 billion WLFI tokens would benefit the founding team, advisors, and early partners, subject to a two-year cliff and a three-year linear vesting schedule. An additional 17 billion tokens designated for early protocol supporters would follow a two-year cliff and two-year vesting schedule.

The proposal states the move is meant to “replace the current indefinite token locks with structured vesting schedules, providing clarity on future token supply, while simultaneously addressing low governance participation.” The voting period will run for seven days and requires a 1 billion WLFI token quorum to pass.

If approved, approximately 10% of tokens set aside for the founding team and investors could also be permanently burned, representing about 4.5 billion tokens, according to the team’s statement.

Price Movement and Market Context

WLFI is down nearly 13% at publication time to $0.064, from a price of $0.073 ahead of the governance vote kicking off. The token once traded at an all-time high of $0.33, according to The Block’s price page.

Investor Pushback

Many presale token buyers have criticized the proposal, viewing the two-year vesting schedule as unfair after already waiting over a year since launch. Approximately 25 billion WLFI tokens, out of the total 100 billion supply, were sold in several public presale rounds. While the project has unlocked some of those tokens, presale investors are still holding onto about 17 billion tokens.

Commentators on X have expressed frustration with the extended timeline. “What’s this 2 year cliff 2 year vesting bullshit? I don’t understand how early investors gotta wait up to 4 years to get their full allocation. Dirty work!” one investor said. Others raised concerns about whether World Liberty will remain viable in two years, while some criticized the vote as another way to enrich President Donald Trump’s family and friends.

Tron founder Justin Sun, one of the largest WLFI investors, has spoken out against the token unlock proposal. “For early purchaser tokens, the proposal imposes a two-year cliff followed by a two-year vesting schedule — and again, for those who do not affirmatively accept, their tokens are locked indefinitely,” Sun said last week.

Political and Ethical Concerns

At launch, Donald Trump was listed as chief crypto advocate for the project, alongside “DeFi Visionary” Barron Trump, “Web3 Ambassadors” Eric Trump and Donald Trump Jr., and co-founder Zach Witkoff, son of Trump ally Steve Witkoff.

Members of Congress have raised concerns about President Trump’s crypto ventures, including World Liberty. The Wall Street Journal previously reported that UAE-backed firm Aryam Investment secretly bought a 49% stake in WLFI for $500 million, with about $187 million going directly to Trump family entities, raising ethical concerns.

Additionally, Abu Dhabi-based state investment firm MGX used the USD1 stablecoin, issued by World Liberty, to close a $2 billion investment in crypto exchange Binance. This deal occurred before President Trump pardoned former Binance CEO Changpeng Zhao, who had pleaded guilty to federal financial violations.

Justin Sun Lawsuit and Governance Dispute

Tron founder Justin Sun recently sued World Liberty after the team froze his WLFI tokens and made him ineligible to vote on governance proposals. Sun, who said he remains a supporter of the president, was one of the largest WLFI investors. For their part, World Liberty accused Sun of misconduct and token manipulation.