Trump family WLFI launches token unlock governance vote, with a maximum permanent burn of 10%

According to the official governance page released on April 30 by World Liberty Financial (WLFI)—a decentralized finance project supported by the Trump family—the team has officially kicked off a vote on token unlock governance proposals, involving approximately 62.28 billion WLFI tokens; the voting period is 7 days, and the quorum threshold is 1 billion WLFI tokens.

Key content of the token unlock proposal and voting rules

(Source: WLFI official governance page)

According to the WLFI official governance proposal, the unlock terms for two categories of token holders are as follows:

Early supporters (approximately 17.04 billion WLFI tokens): Those who accept the new proposal enter a two-year lockup period, followed by a two-year linear unlock; in the fourth year, the tokens are fully distributed. No tokens are burned; token holders who do not accept the new proposal continue to be locked indefinitely and can still participate in governance voting.

Founders, the team, advisors, and partners (approximately 45.24 billion WLFI tokens): Those who accept the new proposal will have 10% (approximately 4.52 billion tokens) permanently burned and removed from the total supply. The remaining 90% has a two-year lockup period plus a three-year linear unlock, with full distribution in the fifth year. Token holders who do not accept the new proposal are also locked indefinitely and can still participate in governance.

According to the WLFI governance proposal, voting uses a simple majority, with quorum set at 1 billion WLFI tokens, and the voting period is 7 days. If the proposal is not approved, the existing indefinitely locked terms will remain in effect.

Controversy focus: backlash from presale investors and Justin Sun’s lawsuit

According to reporting by The Block, some WLFI presale token holders raised objections to the new proposal on the X platform, arguing that introducing a two-year lockup period after the token price fell significantly is an unfair adjustment; some people criticized this vote as a way for the Trump family and its allies to profit.

According to reporting by The Block, Tron (TRON) founder Justin Sun is one of WLFI’s largest investors and has filed a lawsuit against WLFI over the freezing of his tokens and the cancellation of his eligibility to participate in governance voting; WLFI, for its part, accused Justin Sun of wrongdoing and manipulating the token price. Justin Sun publicly opposed the unlock plan, saying that users who bought tokens early must endure a four-year waiting period, and that token holders who do not clearly accept the proposal will be locked indefinitely.

WLFI regulatory background and congressional attention

According to reporting by The Block, the Wall Street Journal previously reported that Aryam Investment, an investment firm backed by the UAE, secretly acquired a 49% stake in WLFI for $500 million, including about $187 million flowing to Trump family entities, which sparked moral controversy. In addition, MGX, an Abu Dhabi state investment company, used USD1 stablecoins issued via WLFI to complete a $2 billion investment in the cryptocurrency exchange Binance; this transaction occurred before the Trump president’s pardon of Binance’s former CEO Changpeng Zhao (CZ), who previously pleaded guilty to federal financial violations. According to The Block, members of Congress have raised concerns about Trump’s crypto investment projects, including WLFI.

Frequently asked questions

What are the voting rules for the WLFI token unlock governance proposal?

According to the WLFI official governance proposal, the voting period is 7 days, the quorum threshold is 1 billion WLFI tokens, and voting follows a simple majority; token holders who do not accept the new proposal will continue to be locked indefinitely, but they can still participate in subsequent governance votes.

What are the specific terms if founders and the team accept the new proposal?

According to the WLFI official governance proposal, after the founders, team, advisors, and partners accept the new proposal, 10% (approximately 4.52 billion tokens) of the tokens held will be permanently burned; the remaining 90% is subject to a two-year lockup period plus a three-year linear unlock, with full distribution in the fifth year.

Why does Justin Sun oppose this token unlock proposal?

According to reporting by The Block, Sun has filed a lawsuit regarding the freezing of his WLFI tokens and the cancellation of his governance voting eligibility; he has publicly stated that the new proposal sets a four-year waiting period for users who bought tokens early, and that tokens held by those who do not clearly accept the proposal will be locked indefinitely.