World Liberty Financial shifted $55.57M in $WLFI into an unlock contract, then backed off a 62B token unlock as whales and governance backlash force tighter vesting.
The team behind World Liberty Financial ($WLFI), a DeFi project closely associated with the Trump family brand, transferred $55.57 million worth of $WLFI into an unlocking contract, according to governance and on-chain disclosures summarized by MEXC. The move came as $WLFI governance weighed a proposal to unlock 62.28 billion tokens—roughly 62% of the total supply—with early voting dominated by whale addresses in favor of a rapid vesting schedule.
In late March, MEXC reported that World Liberty Financial had tabled a plan to “unlock 62.28 billion $WLFI tokens via the Lockbox mechanism,” with the proposal including a burn of 4.5 billion insider tokens and a two-year vesting period for the remaining allocations. As CoinMarketCap later summarized, the scheme would have seen large tranches of previously locked tokens enter circulation, raising concerns about market overhang and the influence of insiders on $WLFI’s governance.
$WLFI whales rethink 62B token unlock after $55.57M move
MEXC noted that early voting on the unlock proposal was “nearly unanimous among major holders,” with whale wallets backing the plan to “activate the $WLFI Lockbox, unlock long-term vested tokens and burn a portion of insider allocations in one coordinated process.” To participate, holders are required to send their tokens into the unlocking contract, temporarily reducing visible wallet balances to zero before the new vesting schedule and claim mechanics take effect, a structure that has confused some smaller investors.
Amid backlash over the potential supply shock, a follow-up governance vote in early May saw $WLFI token holders “overwhelmingly” support delaying the large-scale unlock and tightening vesting conditions, according to an updated MEXC notice. “$WLFI token holders voted overwhelmingly to delay the unlock of 62 billion $WLFI and strengthen vesting and burn mechanisms, reflecting community concerns about market impact and long-term alignment,” the exchange wrote.
At the same time, MEXC highlighted that the project had already moved 11.4 million $WLFI—worth about $1.31 million at the time—to OKX in February, a transaction it said is “typically interpreted as preparation for potential token sales or strategic portfolio rebalancing.” In a broader analysis, CryptoNews described $WLFI’s evolving token plan as an attempt to “tighten tokenomics while still giving insiders and early supporters a path to liquidity,” but warned that “any misstep in execution could trigger heavy selling pressure.”
For now, the $55.57 million shift into the unlocking contract keeps $WLFI’s token supply mechanics under intense scrutiny, as investors parse whether the project will prioritize gradual, community-aligned releases or revert to a more aggressive insider unlock once market conditions improve.
