WLFI proposes token burning and new hard vesting.

• WLFI proposes token burn for insiders.
• DeFi governance defines new five-year vesting model.
• Project linked to Trump seeks to reorganize WLFI distribution.

World Liberty Financial, a decentralized finance project linked to current US President Donald Trump, has submitted a proposal to restructure the distribution of its WLFI governance tokens, involving more than 62 billion units.

The initiative envisions replacing the current indefinite lock-ups with a structured vesting schedule, featuring stricter rules for insiders and early backers. As part of the plan, holders linked to the team, consultants, and partners will be required to accept the permanent burning of 4,5 billion tokens—approximately 10% of their allocation—if they choose to adhere to the new model.

For these participants, the new format establishes an initial two-year period without unlocking, followed by three years of gradual release. In practice, tokens would only begin to be released in the second year, with full distribution planned until the fifth year. Those who refuse the proposal will have their assets locked indefinitely.

The initial backers, who hold approximately 17 billion WLFI, will also face a two-year grace period. However, the release will occur over an additional two years, without any token burning requirement for this group.

The governance proposal requires a minimum quorum of 1 billion tokens for validation, in addition to a simple majority vote. The process includes seven days of voting and, if approved, an additional ten-day period for participants to opt in.

The movement occurs while the WLFI token accumulates a sharp devaluation, trading near US$0,082, a drop of over 75% from its previous all-time high.

In addition to the restructuring, the project continues to expand its ecosystem, integrating a stablecoin called USD1 and lending functionalities within the platform.

In recent days, World Liberty has also entered into a public conflict with Justin Sun, who accused the project of possessing an undisclosed mechanism capable of freezing portfolios. The businessman claimed to have been affected after moving approximately US$9 million through WLFI.

In response, the project team denied any wrongdoing and accused Sun of trying to deflect attention from his own actions, indicating that the dispute could escalate into a legal battle.