WLFI token unlock plan sparks backlash and claims of indefinite locks
World Liberty Financial (WLFI) posted a new token unlock plan in its governance forum, triggering sharp backlash. The proposal would extend the WLFI token unlock timeline for early holders by adding two more years of additional lockup, then release tokens in batches.
Critics argue the WLFI token unlock plan could still create “indefinite” locking for holders who do not accept the revised schedule. Justin Sun, a major WLFI investor and adviser, called it an “absurd governance scam,” alleging coercive voting outcomes and claiming some holders were effectively pushed out after their tokens were frozen. Sun also alleged wallet-blacklisting controls, which the platform denied.
Additional opposition came from Simon Dedic (Moonrock Capital), who said the move “rugged” early investors and benefits existing insiders while the project runs through Donald Trump’s term. World Liberty’s spokesman said the proposal aims to align participants long term, while direct responses to specific accusations were limited.
Voting is expected to begin soon and run for about one week. Separately, earlier reporting said WLFI used 5B WLFI as collateral on Dolomite for a $75M stablecoin loan.
Market context: WLFI is near $0.08 but down over 40% YTD and more than 75% from its Sept. 1 high around $0.33. The governance dispute and WLFI token unlock plan controversy could raise near-term volatility and worsen sentiment for Trump-linked meme exposure.
Bearish
This news centers on WLFI token unlock plan governance, with accusations of possible “indefinite” locking and coercive voting outcomes. Such uncertainty directly undermines tokenholder confidence and can increase sell pressure around upcoming votes. The dispute arrives during already weak momentum (WLFI far below its Sept. 1 high), which historically amplifies downside volatility rather than stabilizing the price.
While the platform says the plan is meant to align participants long term, the lack of transparency and claims about frozen tokens or wallet controls raise the risk of continued overhang. In the short term, traders may treat the upcoming vote as a catalyst for heightened volatility; in the long term, persistent concerns over token unlock credibility could keep liquidity and sentiment depressed. Overall, the impact on WLFI itself skews bearish.