World Liberty Financial (WLFI), a decentralized financial platform, said on Friday that they plan to present a proposal for governance next week. The proposal would include a planned unlocking schedule for WLFI Tokens owned by early retailers.
DeFi Platform Linked to the Trump Family said Before a vote is held, the community will have an opportunity to comment on the proposal. The project states that the vote won’t cover an immediate, full unlock but rather a long-term, structured vesting plan to release tokens gradually.
Early buyers will have WLFI tokens that are mostly locked, while transferability depends on the approval of unlockings by governance. Tokenomist data shows WLFI has released approximately 24.67% (100 billion tokens) of its 100 billion supply, whereas roughly 75.3% is still locked and awaiting future unlocking decisions.
It could be determined by the proposal when early purchasers can access liquidity through WLFI. WLFI’s use in governance is largely restricted. Some holders have publicly reacted to the lockups by threatening legal actions.
These concerns are a continuation of earlier decisions made by the governance around restrictions on tokens. On March 16, WLFI token holders approved a proposal Introduce a 6-month locking-up period for certain transfers. This is one of the first changes made to the framework’s transferability.
Retailers challenge WLFI locks-up
World Liberty early sales materials said The WLFI Tokens are non-transferable, and can remain locked for an indefinite period of time. Any unlocking is subject to governance votes no sooner than 12 months following the token sale. There’s no guarantee on a timeline.
The 12-month period has passed with WLFI public sale beginning around mid-October 2024The company’s current proposal is approximately 18 months later than the first sale. The company raised at least $550 million From WLFI tokens sold across two funding round.
Some self identified WLFI pre-sale buyers publicly complained Most of their tokens are still locked up, even though parts of the larger token supply became transferable.
One or more buyers self-identified said In the United States, they filed legal notifications and pursued claims against World Liberty Financial. Cointelegraph was unable to independently confirm that a lawsuit had been brought.
Cointelegraph had reached out to World Liberty Financial, asking for their opinion. However, they hadn’t received any response before publication.
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The holder’s concerns are heightened by the onchain borrowing.
The community is one member said In an X message, token holders expressed concern about the borrowing activities of the project and questioned how treasury money was being spent. Onchain data shows World Liberty Financial’s Treasury borrowed approximately $75 million worth of stablecoins using WLFI collateral.
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Source: cointelegraph.com
