World Liberty Proposes Phased WLFI Token Unlock After Holder Backlash

World Liberty Financial, the Trump family-backed DeFi platform, imposed long-term lockup restrictions when it sold tokens to early buyers. The release of about 62.2 billion WLFI tokens has consequently become a central governance issue. Holders fear their funds could remain frozen for an extended period, and some have threatened legal action. A separate $75 million loan controversy has deepened concerns about conflicts of interest and governance transparency.

World Liberty Financial recently proposed a phased unlock that would give early buyers access to WLFI under a long-term vesting schedule rather than releasing about 62.2 billion tokens at once. The plan also includes burning 10% of the team’s allocation. The platform said it would seek community feedback before a formal governance vote. Although the proposal received near-unanimous support after voting began, WLFI fell as much as 14%, reflecting continued market concern over the lengthy lockup arrangements.