Rescue Plan: Massive token burning and 4-year lock-ups to save the Trump family’s token (WLFI)
The Trump family’s ambitious crypto project, World Liberty Financial (WLFI), has taken a radical U-turn. In an attempt to halt the freefall of its token and quell an investor ‘uprising’ led by figures such as Justin Sun, the team has presented a governance proposal that completely redefines its digital economy.
The ‘Great Burn’: 4.5 billion tokens to the fire
The flagship measure of the proposal is the immediate destruction (burning) of 10% of the tokens allocated to founders, the team and partners. This amounts to removing some 4.5 billion WLFI from circulation.
This move aims to address the market’s primary fear: massive inflation. With the token trading at around $0.08 (75% below its all-time high of $0.33), the team hopes that reducing the total supply will serve as a psychological ‘floor’ for the price.
The ‘Vesting’ That Will Survive the White House
What the specialist press in the US (such as The Defiant or CoinDesk) is discussing most is the new unlocking schedule. The proposal establishes a ‘wall’ system to prevent large holders from selling their coins all at once:
- For the team and founders: A 2 year ‘cliff’ (total lock-up) is proposed, followed by a gradual release over a further 3 years.
- For presale buyers: Their tokens will begin to be unlocked in 2 years and will be fully released in 4 years.
If this plan is approved, the founders’ tokens will not be fully released until 2031, ensuring that the project maintains its structure long after the current political cycle in the US has ended.
A ‘Cold War’ context in the DeFi sector
This announcement is no coincidence. It comes just 48 hours after Justin Sun (founder of TRON and one of the project’s biggest investors) publicly accused World Liberty Financial of being a ‘scam’. Sun alleges that the token’s smart contract contains hidden ‘blacklist’ functions that would allow the team to freeze funds unilaterally.
Furthermore, the project is under scrutiny for having deposited its own tokens (WLFI) as collateral on the Dolomite protocol to borrow $75 million in stablecoins. Critics and analysts fear this is a ploy to extract real liquidity before the token suffers further devaluation.
What happens next?
Yesterday’s proposal now enters a 7 day voting period. For it to be approved, a quorum of 1 billion WLFI tokens is required. If the ‘YES’ vote wins, the burning of 10% of the team’s funds will be executed automatically and irreversibly.
Do you think this massive burn and the tightening of vesting requirements are enough to restore confidence in the project, or do you think it’s too little, too late?
We want to hear your thoughts! Leave your comments below.
Disclaimer: The information set forth herein should not be taken as financial advice or investment recommendation. All investments and trading involve risk and it is the responsibility of each individual to do his or her due diligence before making a decision.
