WLFI Proposes Burning 4.5 Billion Tokens During Major Governance Restructuring

In a major move to rebuild trust and strengthen long-term prospects, World Liberty Financial (WLFI) has proposed a new governance plan that could change the way it manages its tokens.

This plan includes a large amount of 62.28 billion WLFI tokens and incorporates stricter key terms, an updated distribution schedule, and the ability to burn over 4.5 billion tokens. Stronger Security Measures for Founders and the Team The biggest change affects internal stakeholders such as founders, team members, advisors, and partners. If the proposal is approved: Approximately 45.24 billion tokens will be locked for 2 years (waiting period). After that, tokens will be gradually released over 3 years. When users choose to participate, 10% of the tokens will be burned, resulting in a permanent removal of up to 4.52 billion tokens. This means internal stakeholders will need to commit to the project long-term rather than withdraw early. Easier Terms for Early Supporters For early supporters holding 17.04 billion tokens, the terms will be slightly more flexible: A 2-year lock-up period followed by a gradual release over 2 years. No tokens will be burned, so they keep all their tokens. However, token holders must agree to these new terms. If they do not accept, their tokens will be locked indefinitely. Rising Tensions Related to Justin Sun This proposal comes at a time when WLFI is under pressure. A public dispute has arisen between the platform and Justin Sun, the founder of Tron and a former investor in WLFI. Sun claims his account on WLFI has been frozen without a satisfactory explanation. He has made serious allegations against the platform, claiming users were not fully informed about how the system operates. According to Sun, WLFI has installed a hidden “backdoor” function in its smart contract, allowing tokens to be locked. “What I or any other investor was never told is that World Liberty has embedded a backdoor lock function into the smart contract used to issue WLFI tokens. This contradicts the principles of decentralization. It’s a trap advertised as an open door,” Sun said. Both parties have now publicly spoken out, and the dispute could lead to legal action.