World Liberty Financial, the decentralized finance platform, signaled plans to introduce a governance proposal next week that would establish a phased unlock for WLFI tokens held by early retail purchasers.
This move comes after some initial pushback from buyers who have been waiting for greater access to their holdings.
In lieu of an outright and immediate release, the folks at World Liberty seem to be opting for a well-thought-out and deliberate process aimed at achieving stability while giving earlier participants some sort of assurance regarding when liquidity might happen.
How will the new World Liberty proposal come about?
Firstly, the proposal is going to go through community consultation, where the participants have an opportunity to air their opinions before proceeding to a vote. The vote, as per the project’s information, will essentially revolve around the implementation of a vesting schedule that aims at the gradual release of the tokens instead of an outright release.
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From current information provided by Tokenomist, it appears as though only about 24.67% of the total 100 billion WLFI tokens have been unlocked to date, with 75.33% of the tokens remaining locked for the moment. For several retail investors, this has led to some frustration since other portions of the total token supply have become somewhat more flexible.
World Liberty’s early sale materials had clearly stated that tokens would be non-transferable at first and that any unlocks would require a community vote no earlier than 12 months after the sale, with no fixed timeline guaranteed.
This 12-month timeline is now over, and the public sale is believed to have begun somewhere in the middle of October 2024, putting us at approximately 18 months after this date. This project has been able to raise at least $550 million through multiple funding rounds, which attracted considerable attention from hundreds of people who wanted to invest in the Trump family venture.
There have been some presale investors who expressed their dissatisfaction regarding their investments openly, highlighting the fact that most of their funds are locked, whereas others can be transferred freely. In one or two instances, there have been individuals who stated that they had initiated lawsuits in both the US and the Netherlands, but no confirmation on lawsuits could be provided yet. World Liberty has not commented on this matter yet.
This latest development comes after, in March, token holders approved a six-month lock-up rule for certain transfers, representing one of the first major adjustments to the project’s transferability framework. The new phased unlock plan is trying to extend this base, giving everyone a clearer outlook into the future.
According to sources, World Liberty’s treasury reportedly borrowed around $75 million worth of stablecoins from the Dolomite lending protocol via pledging WLFI tokens. This got people talking about how treasury assets are currently being utilized and whether the recent actions are fully in line with the holders’ interests.
Through their commitment to maintaining a transparent process coupled with the gradual release of assets, the developers are hoping to rebuild their user community’s trust while ensuring the protocol’s safety.
