World Liberty Financial (WLFI) has proposed a new plan that could drastically change its token supply schedule in light of addressing the issues raised by the investors.
As per the proposal, 4.52 billion WLFI tokens will be burned instantly once it receives approval from everyone. This burning process will affect the token allocation for founders, team members, advisors, and partners. However, in the meantime, 62.28 billion tokens that are currently under lock-in will be shifted into new vesting programs.
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WLFI Proposes Stricter Token Unlock Plan
The proposal entails more stringent terms of release for the various categories. The first category, which would be supporters, would have to wait two years before having any token releases for two subsequent years. This would imply that the entire stake will still be available but just delayed.
Founders and internal opt-ins have stricter terms: the token lockup period is two years, followed by distribution over three years, while a certain percentage of tokens will be irreversibly burnt.
According to WLFI, the structure is intended to replace uncertainty with certainty regarding scheduling. For those who decline the new structure, they remain within the current structure of locking.
This proposal is made in light of growing irritation among buyers who have waited months for the liquidity problem to be solved. It appears that some of the buyers were even considering legal options.
Justin Sun’s comments on the lack of transparency on the project’s side did not help much either. He wondered how fair the previous governance voting rounds where most votes belonged to just a few wallets. As a result, WLFI was reported to take legal action against him.
WLFI Control Concerns Grow
This most recent suggestion is coming at an important moment. On-chain data indicates that wallets associated with WLFI have utilized billions of tokens to secure a loan for about $75 million worth of stablecoins. Moreover, the current price of the token has hit a new low.
Participation in governance has been minimal. WLFI has enacted six policies with voting ranging from 2.7B to 11.1B tokens. Around 23% of the total locked supply affected by this new proposal has cast their vote. This brings into question the level of power held by voting individuals.
While the proposal is focused on the burning and vesting of tokens, there are other critical issues that relate to power and governance that must be addressed. The outcome of the vote will influence both token release schedules and future project influence.
According to WLFI, there are many uncertainties under the existing system, and it contends that the network is at a point where a timeline should be developed.
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