The Trump-backed DeFi project World Liberty Financial (WLFI) has just announced a key governance proposal involving approximately 62.28 billion Token, marking a new step in perfecting the project's allocation and supply control mechanisms. This move is XEM as a direct response to previous debates within the community regarding the Token Lockup unlocking mechanism and the level of transparency in WLFI's allocation structure.
According to the proposal, if approved by the community, approximately 45.24 billion Token held by the founding team, core personnel, advisors, and strategic partners will be subject to a 2-year "cliff" mechanism, followed by linear allocation over the next 3 years. This means that for the first 2 years, these Token will not be unlocked; after that period, Token will be gradually unlocked according to a fixed schedule over 36 months. Notably, the plan also includes burning up to 10% of these Token , equivalent to approximately 4.52 billion WLFI, to reduce the potential circulating supply and reinforce long-term scarcity.
Meanwhile, the 17.04 billion Token allocated to early supporters will be adjusted to a 2-year cliff and vesting mechanism over the following 2 years, but without a Token burning policy. Thus, WLFI is attempting to strike a balance between the interests of the development team and early investors, while ensuring stability for the Token market as the project enters more mature stages.
Another notable point is that Token not participating in this proposal will remain locked indefinitely. This mechanism is XEM as a strong measure to encourage stakeholders to agree to the new roadmap, while minimizing the risk of a sudden increase in supply in the future.
