Trump-backed World Liberty Financial proposes unlocking 62 billion tokens

The Trump family-backed World Liberty Financial has proposed unlocking 62.3 billion $WLFI governance tokens on Tuesday, less than a week after CoinDesk reported the venture had used 5 billion of its own tokens as collateral on lending platform Dolomite to borrow $75 million in stablecoins.

The proposal splits the locked supply into two groups. Early supporters holding 17 billion $WLFI would receive a 2-year cliff followed by a 2-year linear vest, keeping every token.

Founders, team members, advisors, and partners holding 45.2 billion $WLFI would face a 2-year cliff and 3-year vest, but with 10% of their allocation, roughly 4.5 billion tokens, burned immediately on passage. (Burns refer to the permanent removal of tokens from supply, usually by sending to an address that is not controlled by anyone.)

In practice, it means insiders would surrender 4.5 billion tokens in exchange for beginning to unlock 40.7 billion that were previously locked indefinitely with no vesting schedule attached. Those tokens had no path to liquidity before this proposal.

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