WLFI Token Slumps 14% Amid Controversial Governance Vote on Token Unlocks

The native token of World Liberty Financial (WLFI) experienced a nearly 14% decline on Wednesday, trading at $0.06367. The sell-off coincides with a high-stakes governance vote regarding the vesting schedules of more than 62 billion tokens. The proposal, which went live on Wednesday after being submitted in mid-April, seeks to implement a multiyear lock-up for early investors and insiders. Under the proposed terms, tokens would be subject to a two-year cliff before being released linearly over an additional two to three years. The project team stated this structure is intended to ensure tokens remain in the hands of those genuinely committed to the project's future. While the vote currently shows 99.95% approval—with 6 billion tokens in favor and only 3.2 million against—the proposal has sparked significant controversy on social media. High-profile figures, including Tron founder Justin Sun and Moonrock Capital founder Simon Dedi, have criticized the move, with Dedi comparing the structure to a 'rug pull' and questioning the timing of the unlocks. Market reaction remains negative as the token has plummeted 72.8% since its initial open market debut. The voting period for the governance proposal remains open until May 7, with the quorum requirement already met.