World Liberty Financial, backed by the Trump family, has put forward a proposal to unlock 62.3 billion WLFI governance tokens. The move came less than a week after CoinDesk reported that the project had pledged 5 billion of its own WLFI tokens on Dolomite and borrowed $75 million in stablecoins, with part of the funds routed to Coinbase Prime.
WLFI was originally sold as a governance token with no transferability and no defined path to liquidity, remaining locked indefinitely. That setup shaped how buyers understood the asset. A vesting schedule would change that structure and reopen the economics of the token for holders, especially insiders who previously had no way to exit.
Proposal divides locked supply into two vesting buckets
Under the plan, the locked supply would be split into two groups. Early supporters holding 17 billion WLFI would face a two-year cliff followed by a two-year linear vest, while keeping their full allocation.
Founders, team members, advisers, and partners hold the other 45.2 billion WLFI. Their allocation would also carry a two-year cliff, followed by a three-year vesting schedule. If the proposal passes, 10% of that bucket, about 4.5 billion tokens, would be burned immediately.
In effect, insiders would give up around 4.5 billion tokens in exchange for starting to unlock 40.7 billion WLFI that had previously been locked with no vesting schedule at all. That is the key change. Tokens that had no route to liquidity would gain one.
Low quorum requirement draws attention to voting math
WLFI included participation figures from its previous six governance votes in a Wednesday post. The most active proposal, a vote on making the token tradeable, drew 11.1 billion WLFI in voting power.
This time, quorum is set at 1 billion WLFI, and only a simple majority is needed for approval. At that threshold, the proposal could pass with only a fraction of the voting power tied to founders and team allocations. Holders who do not explicitly accept the new vesting terms would keep their tokens locked indefinitely, though they would still retain governance rights.
Loan disclosure was followed by a price drop and public dispute
The timing has become part of the story. On April 9, CoinDesk reported that WLFI had deposited 5 billion of its own governance tokens into Dolomite, a lending protocol whose co-founder also advises WLFI. The project then borrowed $75 million in stablecoins, with some of that capital sent to Coinbase Prime.
The day after the report, the WLFI token fell 12% to a record low. Soon after, Tron founder Justin Sun, once one of the project’s biggest backers, publicly accused the team of treating users like “personal ATMs.” WLFI responded by threatening legal action.