World Liberty Financial (WLFI), the cryptocurrency project of US President Donald Trump and his family, today announced a governance proposal to restructure its locked token model and burn a portion of its supply.
Accordingly, a governance proposal covering approximately 62.28 billion WLFI tokens was announced, and a governance proposal was published to gradually release 62.2 billion WLFI tokens. This proposal suggests unlocking 62.3 billion governance tokens that were previously locked indefinitely and burning up to 4.5 billion WLFI tokens from the locked WLFI tokens.
Key details were outlined as follows: Advisors, institutions, partners, founders, and team members collectively hold 45.2 billion locked WLFI tokens. These 45.2 billion locked WLFI tokens will be subject to a “2-year lock-up + 3-year vesting” program. Participants will be required to burn 10% of their tokens upon joining the program, with the permanent burn limited to approximately 4.5 billion. The remaining approximately 40.7 billion tokens will be distributed gradually over three years following the mandatory two-year waiting period.
Secondly, early investors holding 17 billion WLFI tokens will be subject to a “2-year lock-up + 2-year vesting” plan. This will not require token burning.
Tokens held by investors who do not accept the new plan will remain locked indefinitely.
If the proposal is accepted, a total of 62.2 billion WLFI tokens will actively participate in governance for at least two years. WLFI describes this move as one of the strongest signals of long-term governance compliance in the DeFi space.
*This is not investment advice.
