Trump backed WLFI proposes 62 billion token unlock as $75 lending controversy lingers
World Liberty Financial proposes unlocking 62 billion tokens, burning 4.5 billion, and vesting 40.7 billion for insiders.Summary
Trump-backed World Liberty Financial (WLFI) has proposed unlocking 62.3 billion of its governance tokens. This proposal comes shortly after a report revealed the venture used 5 billion WLFI tokens as collateral to borrow $75 million in stablecoins. The plan divides the locked tokens: early supporters with 17 billion WLFI will receive a 2-year cliff followed by a 2-year linear vest. Founders, team members, advisors, and partners holding 45.2 billion WLFI will face a 2-year cliff and a 3-year vest, with 10% (approximately 4.5 billion tokens) being immediately burned upon approval. This effectively means insiders will surrender 4.5 billion tokens to unlock 40.7 billion previously locked indefinitely without a vesting schedule, providing a path to liquidity.
(Source：CoinDesk)