Trump-Backed World Liberty Proposes 62B Token Vesting Reset

TLDR

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World Liberty has proposed converting 62.3 billion WLFI governance tokens from indefinite lockups into fixed vesting schedules.
Insiders who opt into the new terms must burn 4.5 billion WLFI, equal to 10% of their allocation.
Founders and team members would face a two-year cliff followed by a three-year linear vesting period.
Early supporters would follow a two-year cliff and a two-year linear vest without any token burn.
The proposal requires a quorum of 1 billion WLFI and a simple majority within a seven-day vote.

World Liberty Financial (WLFI) has proposed a sweeping change to its token lockup structure while outlining insider burn terms. The Trump-backed decentralized finance project seeks to convert 62,282,252,205 governance tokens into fixed vesting schedules. The plan would impose new cliffs, introduce token burns for insiders, and require holder approval through a formal vote.

World Liberty Sets New Vesting Terms and Insider Burn Condition

World Liberty said it would apply a two-year cliff to all holders who opt into the proposal. Insiders must permanently destroy 4.5 billion WLFI, equal to 10% of their 45,238,585,647 token allocation, upon acceptance. The team stated that holders who decline the new terms will remain locked indefinitely under existing agreements.

Founders, team members, advisors, and partners would face a two-year cliff followed by a three-year linear vest. Tokens would begin unlocking after year two and reach full distribution by year five. The proposal requires a quorum of 1 billion WLFI tokens, a simple majority for passage, and a seven-day voting window.

Early supporters holding 17,043,666,558 WLFI would follow a separate schedule under the plan. They would face a two-year cliff and then a two-year linear vest, with full distribution by year four. The team confirmed that this category would not burn any tokens under the revised structure.

The project stated that it would open a 10-day acceptance window after deploying the new functionality. Participants must affirmatively opt in to activate the revised vesting schedule. Those who do not respond will remain subject to indefinite lockups.

Governance Proposal Follows Dispute and Ecosystem Updates

World Liberty launched WLFI in September 2025 and currently trades at $0.082. The price marks a 75.1% decline from its all-time high of $0.33, according to market data. The team linked the governance update to broader ecosystem expansion tied to USD1.

USD1 operates as a stablecoin deployed across multiple blockchain networks. The platform also supports lending and borrowing features within the WLFI interface. The team framed the vesting overhaul as part of this broader operational update.

The governance move follows a public dispute with Tron founder Justin Sun. Sun alleged that the WLFI smart contract includes an undisclosed blacklisting function. He said the function gives the team “unilateral power to freeze, restrict, and effectively confiscate the property rights of any token holder.”

Sun described himself as “the first and single largest victim” of the feature. He pointed to his wallet, which the project froze in September 2025 after he moved about $9 million in WLFI. In response, World Liberty accused Sun of “playing the victim while making baseless allegations to cover up his own misconduct,” and the team stated that it would address the matter in court.

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