Trump-linked WLFI drops 13% as vote opens on 62B unlock

The WLFI token fell about 13% after holders opened a seven-day governance vote on a proposal to release 62 billion tokens into circulation. The proposal must meet a quorum of 1 billion WLFI to pass.

Under the plan, roughly 45 billion WLFI allocated to the founding team, advisors and early partners would begin a two-year cliff and then vest linearly over three years. Up to 17 billion tokens set aside for early protocol supporters would follow a two-year cliff and a two-year vesting schedule. The proposal also allows for a permanent burn of about 10% of the tokens allocated to founders and investors, roughly 4.5 billion WLFI.

The proposal replaces existing indefinite token locks with defined vesting schedules, and the text says the aim is to clarify future token supply and boost governance participation. Holders who do not accept the new terms would remain locked indefinitely under the plan.

Market response was immediate. WLFI traded down to about $0.064 from roughly $0.073 before the vote began. The token previously reached an all-time high near $0.33. About 25 billion WLFI of the 100 billion total supply were sold in public presales; presale investors still hold about 17 billion tokens that would be affected by the proposed schedules.

Some early buyers posted objections on social media. “What’s this 2 year cliff 2 year vesting bullshit? I don’t understand how early investors gotta wait up to 4 years to get their full allocation. Dirty work!” a commenter on X wrote. Other posts questioned whether the project will still operate in two years and voiced concern the change could benefit members of the Trump family and their allies.

The project lists prominent members of the Trump family in advisory and promotional roles: Donald Trump as chief crypto advocate, Barron Trump as “DeFi Visionary,” and Eric Trump and Donald Trump Jr. as “Web3 Ambassadors.” Co-founder Zach Witkoff is the son of a Trump ally. Lawmakers have raised questions about the family’s business activities in crypto.

Corporate deals tied to the project include a reported sale of a 49% stake in the WLFI entity to an Abu Dhabi-backed firm for $500 million, with about $187 million of that amount going to Trump-linked entities. Separately, an Abu Dhabi state investment vehicle used WLFI’s USD1 stablecoin in a $2 billion purchase of a stake in a crypto exchange. That transaction occurred before a presidential pardon for a former exchange executive.

Disputes over governance have reached major investors. Justin Sun, founder of Tron, sued the project after his WLFI tokens were frozen and he was made ineligible to vote. Sun criticized the unlock proposal and warned it would impose new cliffs and vesting on early purchasers. Project leaders have accused Sun of misconduct and token manipulation.

The vote’s result will determine whether the proposed vesting schedules and the potential token burn proceed, which would affect future WLFI supply and the ability of early investors to sell holdings.