World Liberty Financial, known for its close ties to the Trump family, has proposed a comprehensive governance model that could fundamentally change the WLFI token economy. The project team proposes a gradual release of the 62.28 billion WLFI tokens, currently locked indefinitely, into circulation according to a specific schedule. Currently, there is no release plan for the tokens; if the proposal is accepted, they will enter the market through a "vesting" model spread over several years.
One of the most striking aspects of the plan is the mandatory burn requirement for insiders. It envisions the permanent burning of 4.5 billion tokens, representing 10% of the total 45.2 billion WLFI held by founders, team members, advisors, and business partners. This burn aims to reduce supply and limit potential pressure on the price.
The new model will implement a two-year "cliff" period for all participants, meaning no tokens will be released during this time. Following this, a three-year linear distribution will begin for the founders and team members. This means that the tokens of this group will be fully unlocked at the end of five years.
The other group, which includes early investors, has a different timeline. For these investors, who hold approximately 17 billion WLFI, the two-year lock-up period is maintained, but a two-year unlocking period is applied afterwards. There is no token burning in this group.
The technical details of the proposal have also been clarified. For the vote to be valid, a "quorum" must be provided with at least 1 billion WLFI tokens. A simple majority will be sufficient for the decision to be accepted. The voting process will last seven days, followed by an additional 10-day period for participation in the system.
WLFI price at rock bottom
The WLFI token has experienced a significant loss in value since its launch. The asset, launched in September 2025, is trading around $0.08, down approximately 75 percent from its peak of $0.33. Therefore, the new plan is also interpreted as an attempt to rebuild investor confidence.
The timing of the proposal is also noteworthy. The project is also in the process of building a broader ecosystem encompassing its stablecoin, USD1, and DeFi features such as lending and borrowing. Governance aims to create a more balanced token economy to support this expansion.
Meanwhile, World Liberty Financial has recently been in the news for another development: a public dispute between Tron founder Justin Sun and the project. Sun has leveled harsh criticism against a function in the WLFI smart contract that he claims allows for the blacklisting of specific addresses. Sun alleges that this mechanism allows for the unilateral freezing and restriction of user assets. He claims to have been affected by this, stating that his wallet was frozen after approximately $9 million worth of WLFI transfers.
World Liberty Financial has denied these allegations. The project team described Sun's accusations as unfounded and announced that the matter would be taken to court. This development has reignited debates about the project's governance structure and level of centralization.



