World Liberty Financial (WLFI), a DeFi project tied to the Trump family brand, shifted $55.57 million worth of WLFI tokens into an unlocking contract, according to governance and on-chain data compiled by MEXC. The move came as the project weighed a proposal to unlock 62.28 billion tokens—roughly 62% of total supply—with early whale votes heavily favoring rapid vesting.
Whale Votes Initially Backed Unlock Amid Supply Shock Fears
MEXC reported in late March that WLFI had proposed unlocking 62.28 billion WLFI via the Lockbox mechanism, alongside burning 4.5 billion insider tokens and enforcing a two-year vesting period for remaining allocations. Critics warned the plan would release large locked tranches into circulation, raising concerns over market overhang and insider governance influence.
Early governance voting was “nearly unanimous among major holders,” MEXC noted, with whale wallets supporting “activating the WLFI Lockbox, unlocking long-term vested tokens and burning a portion of insider allocations in one coordinated process.” Participants had to send tokens to the unlocking contract, temporarily zeroing their visible wallet balances until new vesting schedules and claim mechanics take effect—a structure that confused smaller investors.
Community Pushback Led to Overwhelming Vote to Delay
Facing backlash over potential supply shock, a follow-up governance vote in early May saw WLFI token holders “overwhelmingly” support delaying the large-scale unlock and tightening vesting conditions, per an updated MEXC notice. “WLFI token holders voted overwhelmingly to delay the unlock of 62 billion WLFI and strengthen vesting and burn mechanisms, reflecting community concerns about market impact and long-term alignment,” the exchange wrote.
Separately, MEXC highlighted that WLFI had moved 11.4 million WLFI (worth about $1.31 million at the time) to OKX in February—a transaction “typically interpreted as preparation for potential token sales or strategic portfolio rebalancing.” CryptoNews described WLFI’s evolving token plan as an attempt to “tighten tokenomics while still giving insiders and early supporters a path to liquidity,” but warned that “any misstep in execution could trigger heavy selling pressure.”
The $55.57 million shift into the unlocking contract keeps WLFI’s token supply mechanics under intense scrutiny as investors gauge whether the project will commit to gradual, community-aligned releases or revert to aggressive insider unlocks once market conditions improve.