WLFI Proposes 4.5 Billion Token Burn in Major Governance Reset

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In a big move to rebuild trust and strengthen its long-term outlook, World Liberty Financial (WLFI) has introduced a new governance proposal that could change how its tokens are managed.

The plan covers a huge 62.28 billion WLFI tokens and includes stricter lockups, updated vesting schedules, and a potential burn of over 4.5 billion tokens.

Stronger Lockups for Founders and Team

The biggest change affects insiders like founders, team members, advisors, and partners.

If the proposal is approved:

• Around 45.24 billion tokens will be locked for 2 years (cliff period)
• After that, tokens will be released slowly over 3 years
• A 10% token burn will apply when they opt in, removing up to 4.52 billion tokens permanently

This means insiders will have to stay committed to the project for the long run instead of exiting early.

Easier Terms for Early Supporters

For early supporters holding 17.04 billion tokens, the terms are slightly more flexible:

• A 2-year lockup period
• Followed by a 2-year gradual release
• No token burn, so they keep all their tokens

However, holders must agree to these new terms. If they don’t opt in, their tokens will stay locked indefinitely.

Tensions Rise With Justin Sun

This proposal comes at a time when WLFI is already under pressure. A public dispute has emerged between the platform and Justin Sun, the founder of Tron and a former investor in WLFI. 

Sun claims that his accounts on WLFI have been frozen without proper explanation. He has made serious allegations against the platform, suggesting that users were not fully informed about how the system works.

According to Sun, WLFI included a hidden “backdoor” function in its smart contract that allows tokens to be locked.

“What was never disclosed to me or any other investor is that World Liberty built a backdoor locking function into the smart contract used to issue WLFI tokens. This is the opposite of decentralization. This is a trapdoor being marketed as an open door,” Sun said.

Both sides have now spoken publicly, and the dispute could move toward legal action.