World Liberty Financial proposes immediate 10% burn of insider WLFI allocation

World Liberty Financial has put forward a governance proposal targeting over 62 billion $WLFI tokens across early backers and internal stakeholders, as it seeks to restructure token locks and future supply.

The plan would trigger the immediate destruction of up to 4.5 billion tokens tied to founders, team members, advisers and partners, representing about 10% of those holdings, if approved.

We’ve just posted a governance proposal to the forum for community discussion, and we believe it represents one of the strongest long-term governance alignment signals in DeFi.

Here's what it does 🧵

— $WLFI (@worldlibertyfi) April 15, 2026

The proposal also introduces new vesting schedules across stakeholder groups.

Early supporters, who collectively hold about 17 billion locked tokens, would move to a four-year schedule with a two-year cliff followed by linear unlocking. No tokens from this group would be burned.

Founders, team members, advisers and partners, who hold over 45 billion tokens, would face stricter terms.

If they opt into the new structure, 10% of their holdings would be burned, with the remainder vesting over five years, including a two-year cliff. Those who do not accept the terms would remain locked indefinitely but retain their governance rights.

The proposal is intended to address a “governance overhang,” as noted by the team.

Since its launch, $WLFI has completed six governance proposals with participation ranging from 2.7 billion to 11.1 billion tokens. However, only approximately 23% of eligible locked tokens have participated, leaving the majority inactive.

World Liberty said the changes are aimed at creating a clearer and more predictable framework for token distribution, while ensuring governance power rests with active and committed participants.

The move comes as the project positions itself for its next phase of growth following the rollout of products including its USD1 stablecoin, lending and borrowing markets, and integrations with centralized exchanges.

The proposal will be put to a seven-day vote, requiring a quorum of 1 billion tokens and a simple majority to pass.

Token holders will have ten days to accept the new vesting terms following deployment. Tokens will remain locked by default if no action is taken, and any approved burn will be executed immediately. If the proposal does not pass, the existing conditions will remain unchanged.