The native token of Trump-linked World Liberty Financial fell nearly 14% as a contentious governance vote began. The proposal would lock over 62 billion WLFI tokens held by insiders and early investors for a minimum of two years. Despite overwhelming support in the ongoing vote, the plan has drawn sharp criticism from prominent figures in the crypto community who have likened it to a rug pull.
The WLFI token dropped nearly 14% as a controversial proposal to lock a massive token supply went to a vote. The plan aims to place over 62 billion tokens under new multiyear vesting schedules.
Voting went live on Wednesday and will conclude on May 7. At the time of writing, 99.95% of votes favored the proposal, easily meeting the quorum.
World Liberty Financial called this “one of the most significant governance proposals in WLFI history.” The team stated that none of the 62 billion locked tokens would touch the market for at least two years if the measure passes. Despite the lopsided vote, the proposal has faced strong community backlash.
Moonrock Capital founder Simon Dedic likened it to a rug pull and questioned the timing aligning with a U.S. presidential term. Tron founder Justin Sun, a major WLFI holder, labeled it one of the most absurd proposals he has seen.
The unlocking schedule involves a two-year cliff for early investors, followed by a two-year linear vest. Insiders like founders and team members face a two-year cliff and a three-year linear vest.
Critics have attacked the proposal’s lengthy lock-up period and the voting mechanism. Tokens from community members who do not vote will be locked indefinitely.
The team said this structure provides clarity on governance and keeps tokens with committed participants. WLFI was priced at $0.06367 at the time of writing, down 72.8% from its all-time high.
