Trump-backed World Liberty proposes vesting overhaul, 4.5B WLFI burn

Trump-backed World Liberty published a governance proposal on Wednesday to convert 62,282,252,205 WLFI governance tokens from indefinite lockups to fixed vesting schedules and to require insiders who opt in to permanently destroy 4.5 billion WLFI.

Under the plan, holders must opt in to switch from indefinite lockups to the new schedules; those who decline would remain locked under current terms. All participating classes face a two-year cliff before any tokens begin to unlock. Insiders who opt in would place their 45,238,585,647 WLFI allocation under a two-year cliff followed by a three-year linear vest, with full distribution by year five, and would be required to burn 4.5 billion WLFI, equal to 10% of that allocation. Early supporters holding 17,043,666,558 WLFI would face a two-year cliff followed by a two-year linear vest, with tokens fully distributed by year four and no burn required.

The proposal sets a quorum threshold of 1 billion WLFI tokens, requires a simple majority of voted tokens for passage and would allow voting for seven days. An acceptance window for holders to opt in would open for 10 days after the functionality is deployed, the proposal states.

The governance push accompanies plans to expand the WLFI ecosystem, which the team links to USD1, a stablecoin it says will operate across multiple blockchains, and to new lending and borrowing features integrated into the WLFI interface.

WLFI launched in September 2025 and currently trades around $0.082, down about 75% from its all-time high near $0.33.

The proposal follows a public dispute with Tron founder Justin Sun. Sun 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.” He described himself as “the first and single largest victim” after World Liberty froze his wallet in September 2025 when he moved roughly $9 million of WLFI between addresses.

World Liberty responded by accusing Sun of “playing the victim while making baseless allegations to cover up his own misconduct” and indicated it would seek a court ruling.

If voters approve the proposal, the schedules would replace open-ended locks with time-bound vesting designed to spread token distribution over multi-year periods.