Early investors aiming to access $1.3 billion in World Liberty Financial (WLFI) tokens face a lengthy wait, with a vesting schedule projected to extend beyond the potential end of President Trump’s second term.
A governance proposal released by World Liberty this past Wednesday details a four-year plan for unlocking 17 billion WLFI tokens for early backers, contingent upon a two-year cliff and subsequent two-year vesting period post-enactment. This timeline is notably shorter than that proposed for the project’s founders, team members, advisors, and partners, who would have 40 billion WLFI tokens distributed over five years, with an additional 4.5 billion removed from circulation.
The proposal explains these token releases are structured to be “measured and predictable,” offering market transparency, while the removal of tokens signals confidence among key stakeholders.
Recent attention has been drawn to World Liberty following a controversial $75 million loan secured through stablecoins borrowed from Dolomite, a decentralized finance platform co-founded by an advisor to World Liberty, using 5 billion WLFI as collateral. This announcement followed discussions about the vesting schedule that surprised some within the governance forum due to the project’s fund acceptance beginning in October 2024—approximately 550 days prior.
“WTF,” one user commented. “So, after a full three years, we’re finally getting our next token distribution.” Another expressed frustration more severely: “I’m going to put these bastards in jail.”
Justin Sun, the entrepreneur behind Tron, criticized the proposal as “tyranny” on social media, arguing it unfairly penalizes WLFI holders who oppose it and excludes those with substantial holdings like himself. He further questioned the anonymity of those controlling the smart contracts versus the required disclosure from investors.
Sun labeled the governance proposal a facade for power consolidation: “This proposal is not governance,” he stated. “It’s an exercise in power by the few, engineering further control and asset seizure.”
Investors participating last year’s public token sale initially had no clarity on accessing their WLFI tokens. Upon becoming tradable in September, early supporters accessed only 20% of their holdings at a then value of $0.23 per token according to CoinGecko. Since then, the price has fallen by 65%, reaching about $0.08.
Despite the decline, early investors may still hold paper profits due to initial purchase prices ranging from $0.015 to $0.05. With 80% of their tokens locked, a user criticized the structure as “overly punitive,” arguing it undermines confidence by imposing a two-year blackout on token movement.
The vesting proposal, which demands acceptance or results in indefinite locking, outlines eligibility criteria under applicable laws. One investor expressed concerns about the futility of participation, stating, “There is no democracy. The system is a joke.”
Sun has recently amplified existing tensions by accusing World Liberty’s team of exploiting investors as a personal funding source following a controversial WLFI-backed loan. He claimed that hidden mechanisms in the smart contracts allowed for token freezing and demanded control over blacklisted tokens from September, coinciding with his “deposit tests” on an exchange.