World Liberty Financial, the Trump-backed DeFi and stablecoin project, proposed converting 62,282,252,205 governance tokens from indefinite lockups to fixed vesting schedules.
The plan imposes a two-year cliff on all participating holders and requires insiders to permanently destroy 4.5 billion WLFI, or 10% of their 45,238,585,647 WLFI allocation, upon opt-in, the project said in a proposal on Wednesday.
Founders, team members, advisors, and partners who opt in face a two-year cliff followed by a three-year linear vest, with tokens beginning to unlock at year two and fully distributed by year five. Holders who do not affirmatively accept the new schedule remain locked indefinitely under existing terms, according to the proposal.
Meanwhile, early supporters holding 17,043,666,558 WLFI face a two-year cliff followed by a two-year linear vest, with tokens beginning to unlock at year two and fully distributed by year four. No tokens are burned under the early supporter schedule, the team said.
The proposal requires a quorum of 1 billion WLFI tokens, a simple majority of tokens voted for passage, and a seven-day voting period, per the team. An acceptance window of 10 days follows deployment of the functionality.
WLFI launched in September 2025. The token is currently trading at $0.082, which represents a 75.1% decline from its all-time high of $0.33, according to The Block’s WLFI price page.
Ecosystem expansion and dispute with Justin Sun
The proposal arrives alongside a broader expansion of WLFI’s ecosystem, which the team ties to USD1, a stablecoin deployed across multiple chains, as well as lending and borrowing functionality within the WLFI interface.
The governance push comes days after a public dispute between World Liberty Financial and Tron founder Justin Sun, who alleged the WLFI smart contract contains an undisclosed blacklisting function that gives the team “unilateral power to freeze, restrict, and effectively confiscate the property rights of any token holder, without notice, without cause, and without recourse.”
Sun called himself “the first and single largest victim” of the function, pointing to his wallet, which the project froze in September 2025 after he moved roughly $9 million of WLFI between addresses.
In their response, the WLFI team accused Sun of “playing the victim while making baseless allegations to cover up his own misconduct” and promised the crypto mogul a day in court.
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