World Liberty Financial has introduced a new governance proposal covering 62.28 billion WLFI tokens, setting out tighter restrictions on insider holdings, revised vesting schedules, and a possible permanent burn of more than 4.5 billion tokens. The proposal is framed as an effort to rebuild trust and reshape long-term token management.
Founders and insiders face a longer lockup schedule
The largest change applies to founders, team members, advisors, and partners. About 45.24 billion tokens in this category would be subject to a 2-year cliff, followed by a gradual release over 3 years if the proposal is approved. That structure would keep insider allocations locked for a longer period and slow their path to liquidity.
The plan also includes a 10% token burn for participants who opt into the new framework. That could remove as many as 4.52 billion WLFI tokens from supply permanently. In practice, insiders would be accepting both a stricter vesting timeline and a reduction in token count.
Early supporters get softer terms but must opt in
For early supporters, the proposal covers 17.04 billion tokens under a more flexible schedule. Those holders would face a 2-year lockup and then a 2-year gradual release period. No burn would apply to this group, allowing them to retain their full token allocations.
Still, the updated terms are not automatic. Token holders must agree to the new arrangement. If they do not opt in, their holdings would remain locked indefinitely. That makes participation a direct condition for moving onto the revised vesting schedule.
Proposal lands as dispute with Justin Sun intensifies
The governance reset arrives while WLFI is already dealing with public criticism from Justin Sun, the founder of Tron and a former investor in the project. Sun has said that his WLFI-related accounts were frozen without a proper explanation, and he has accused the platform of failing to clearly disclose how the system operates.
Sun also alleged that WLFI included a hidden backdoor locking function in the smart contract used to issue its tokens. In his public statement, he said: “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.”
Both sides have now spoken publicly, and the dispute could move toward legal action. The proposal therefore arrives at a moment when WLFI is trying to reset token governance while facing pressure over account freezes and smart contract design.