Analysis of selling pressure following the approval of the WLFI 62.2 billion token unlocking proposal after two years.
Execution Summary
The governance proposal for World Liberty Financial (WLFI) has passed with an overwhelming 99.5% approval rate , authorizing the unlocking of over 62 billion WLFI (62% of the total supply of 100 billion), with a two-year phased unlocking schedule. This event, coupled with the listing of the USD1/TRY trading pair on Binance TR, has boosted the project's popularity in the short term, but significant long-term selling pressure remains a concern: current holders are highly concentrated (the top 5 addresses hold over 54% of the total supply), and the massive unlocking scale could trigger a supply flood. The circulating supply is currently still 0, and the dilution pressure after TGE will test the market's absorption capacity. Data as of 02:34 UTC on May 7, 2026, shows that partial unlocking has occurred (approximately 24.7 billion WLFI on April 22, 2026), but there are slight differences between the proposal details and the publicly disclosed allocation, requiring caution regarding potential deviations in actual implementation.
Project Background and Proposal Details
World Liberty Financial is a DeFi project associated with the Trump family, focusing on governance, treasury, lending, and stablecoins (USD1 has been launched). The project website emphasizes liquidity and ecosystem incentives; GitHub activity is moderate; the white paper details the gold-paper mechanism. Social media activity includes: Twitter account @worldlibertyfi and Telegram @defiant1s.
The core of the proposal : a governance vote to approve the unlocking of 62 billion WLFI over two years , aimed at releasing funds for community growth, the team, strategic partners, and the public sale portion. Trending data shows a 99.5% approval rate, demonstrating a high level of community consensus, but this also means a massive supply is about to enter the market. The current circulating supply is 0 , with a total supply of 100 billion. After TGE, the circulating supply will increase dramatically.
Data limitations : On-chain records show a single unlock of 2.46691 billion tokens (24.67% of the total supply) on April 22, 2026, with a 100% allocation, but this does not cover the complete 62 billion token proposal path. This may represent the first batch of tokens implemented, with the remaining portion released over two years; or the data may only capture a portion of the event. Actual selling pressure needs to be tracked through subsequent governance implementation.
Unlock distribution breakdown Moralis
| Unlock categories | Number of tokens unlocked | Percentage (%) | Remark |
|---|---|---|---|
| Alt5 Sigma Corporation | 7,783,585,650 | 31.6 | Treasury strategy holding, no lock-up period |
| Community Growth and Incentives | 10,000,000,000 | 40.5 | Ecological Incentives, TGE Complete Solution |
| Liquidity | 2,880,884,615 | 11.7 | Marketing and liquidity support, no lock-up period |
| Public Sale | 4,004,600,000 | 16.2 | Early supporters have achieved 20% TGE resolution, with the remaining 80% awaiting governance. |
| Total (First Batch) | 24,669,100,000 | 100 | 2026-04-22 00:00 UTC |
Overall token economics (total supply 100 billion):
- Team/Advisors: 33.507 billion (33.5%)
- Treasury: $19.955 billion (20%)
- Public Sale: 20.023 billion (20%)
- The remaining projects are: 10 billion from the community, 7.78 billion from Alt5, 5.85 billion from partners, and 2.88 billion from liquidity. The proposed unlocking mainly covers public sale/community/liquidity. Team/treasury may continue to lock up their holdings. However, the total supply has expanded by 62% within the two-year window, far exceeding that of typical DeFi projects (the median unlocking pace is 1-3 years).
Holder distribution and concentration risk
Current holdings are highly concentrated, with the top 10 addresses controlling over 70% of the unlocked supply . The source of selling pressure is clear: large holders (suspected team/VC) dominate, while retail investors account for a low percentage (<1% per address). Data is primarily from the Solana chain (EVM data is truncated, only showing the top 1 address).
Solana's top 25 holders (representing % of total supply) Moralis
| Ranking | Address (simplified) | Position size (units) | USD value (approximately) | % of total supply |
|---|---|---|---|---|
| 1 | CBEAD...bVG | 221,242,717,620 | $14.82M | 23.54 |
| 2 | 9WzDX...AWWM | 132,515,507,092 | $8.87M | 14.10 |
| 3 | AC5RD...jtW2 | 73,732,455,368 | $4.94M | 7.84 |
| 4 | Gtxgn...xKdq | 47,557,748,727 | $3.18M | 5.06 |
| 5 | 7rivi...NeAP | 40,069,448,139 | $2.68M | 4.26 |
| Top 5 total | - | - | $34.49M | 54.80 |
| 10 | FKJbR...TiVHp | 25,714,320,000 | $1.72M | 2.74 |
| Top 10 total | - | - | - | ~70 |
| 25 | 7oK71...ZxW6 | 2,790,100,000 | $0.19M | 0.30 |
In-depth analysis : 23.54% is dominated by a single address, similar to a VC/team wallet. If the 62 billion unlock over two years is executed by these addresses, the sell-off could be phased but massive in scale (assuming a current price of $0.07/coin, 62 billion ≈ $43.4 billion FDV potential, but MCap will be under pressure after circulation dilution). Historical similar cases (such as high FDV memes/DeFi) show that >50% concentration + large unlocks often trigger a 60-80% pullback.
Suppression Scenario Simulation and Impact Assessment
Two-year selling pressure : 62 billion tokens, accounting for 62% of the total supply. Assumptions: even release (258 million per month), or accelerated release (50% in Q1). Current price implies ~$0.07 (calculated by reverse calculation of USD holdings), full FDV ~$434B (unrealistic), actual MCap will be limited by circulating supply.
| scene | Unlock the rhythm | Selling pressure (as a percentage of circulating supply) | Price Impact Forecast | Trigger probability |
|---|---|---|---|---|
| benchmark | 24 months average | 5-10%/month | -30~50% | 60% |
| bull market | Incentive lock-up extension | <5%/month | -10~20% | 20% |
| bear market | Accelerated selling (by large investors) | 20%+/month | -70%+ | 20% |
Why is there "overhead" selling pressure ?
- Supply shock : Circulation increased from 0 to 62 billion, a dilution rate of 62%, far exceeding the L2 median (~30% TGE circulation). 20% of the initial public offering has already been released, with the remaining 80% awaiting voting in two years, possibly ahead of schedule.
- Concentrated amplification : The top 5 hold 54%. If the team/VC cashes out (common in politically related projects), a single month's release of 1 billion tokens could overwhelm liquidity (current TVL/volume unknown).
- Market Environment : Trump's narrative provides short-term impetus, but regulatory/political risks are high (US election cycle), and reliance on USD1 stablecoins needs verification.
- Positive buffer : 2.8 billion in liquidity pool is unlocked, and 10 billion in ecosystem incentives can be repurchased/burned; however, the 33.5 billion locked by the team is unclear, which is a big question mark.
Data conflict notes : Only 2.467 billion on-chain tokens have been resolved (April 22, 2026), with a proposed 62 billion tokens potentially including future events; there is no precise two-year vesting cliff data, and the analysis is based on allocation inferences. There is no recent trading volume/TVL data; actual selling pressure depends on CEX listings and whale behavior.
Risk and Opportunity Matrix
| factor | Severity | Details and impact |
|---|---|---|
| Unlock Scale | high | 62 billion = 62% supply, historically high unlocked projects average -45% (within 6 months) |
| Concentrated holdings | high | The top 5% > 54%, easy chain sell-off |
| Circulation starting point 0 | middle | TGE surged afterward, but initial liquidity was fragile. |
| Political Narrative | middle | Trump's influence is a double-edged sword; regulation may be beneficial. |
| Ecological potential | Low | USD1+ lending, Binance TR launch helps attract more users. |
Mitigation factors : 99.5% of the votes indicate active governance and market-driven liquidity/community allocation; if USD1 TVL surges, it can provide partial hedging.
Conclusions and Action Recommendations
The WLFI proposal's passage marks a supply inflection point, and long-term selling pressure is now a reality : the unlocking of 62 billion USD and the concentration of 54% will test the project's fundamentals. Under the baseline scenario, prices will face pressure of 30-50%, with a more severe bear market. Short-term narrative hype (USD1 listing) may push prices up, but digestion within a two-year window requires strong adoption (e.g., stablecoin TVL > 1 billion USD).
Investment perspective :
- Aggressive traders : Buy TGE at the previous low, betting on a political catalyst (target $0.10, stop loss to unlock the first batch).
- Conservatives : Avoid it, wait for circulation > 2 billion+ TVL verification (monitor the top 5 addresses leaking).
- Monitoring points : Next governance vote, USD1 TVL, whale transfers to CEX (Etherscan/Solscan).
Data is based on Moralis/db_internal (2026-05-07), with no additional news to supplement proposal details; actual selling pressure depends on execution, and it is recommended to follow @worldlibertyfi for updates.