100% of pre-sale tokens will become transferable. the unlock refers to Initial Supporters allocation (explained)

There is some disagreement in the community about what % of which coins becomes transferable with the Tradability Vote. This confusion arises from the team’s interchangeable use of “Initial Supporters” and “Early Supporters”.

There are 4 groups:

  1. 35% Token Sale - includes 25% of tokens sold during the pre-sale;

  2. 32.5% Community Growth;

  3. 30% Initial Supporters Allocation;

  4. 2.4% Team and Advisors;

The “Initial Supporters” are defined in the Gold Paper:

DT Marks DEFI LLC, Axiom Management Group, LLC WC Digital Fi LLC

Their tokens are not yet distributed. There is a multisig wallet which holds 40% of $WLFI tokens.

The proposal is VERY CLEAR:

The vote is to:

  1. make the already distributed tokens (token sale allocation, including pre-sale 1, 2 and OTC purchases) transferable;

AND IN ADDITION TO THAT;

  1. unlock a percentage of tokens allocated for Early/Initial Supporters (30% allocation) AND distribute their tokens;

  2. in a subsequent vote, the community will decide on how the remainder of their tokens will vest.

The total current circulating supply is between 25-27%. A large percentage of this circulating supply is held by just a few entities, namely Justin Sun, Aqua1Fund, and DWF Labs. The circulating supply held by retail is likely much lower, probably in the 12-15% range. It would not make any sense to further limit the transferability of this circulating supply while at the same time unlocking a significant % of early supporters supply because that would mean a few entities would hold plurality of the total circulating supply, versus over 85,000 retail investors holding a smaller percentage of the circulating supply.

In short, the only correct interpretation of the proposal is as follows:

  1. the proposal will make 100% of pre-sale tokens transferable;

AND IN ADDITION TO THAT

  1. a % of tokens reserved for Early/Initial Supporters will be unlocked and distributed, AND

  2. the community will decide in a second vote how the remainder of their tokens will vest.

This would ultimately result in a circulating supply between 27-40%, which is healthy!

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100% 25B will be 100% unlocked thank

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Also very important to remember: retail holds only 15% of supply, the remainder of the 10-12% sold tokens are held by just a few entities including Justin Sun, Aqua1Fund, and DWF Labs.

If the team unlocks 10% of the 30% allocation for Early/Initial Supporters, it would mean that;

  1. 15% of supply held by 86,000 retail investors;
  2. 10% of supply held by Early/Initial Supporters (3 entities);
  3. 10-12% of supply held by several entities (Justin Sun, DWF Labs, Aqua1Fund).

This would result in a circulating supply of 35 - 37%, of which 40-42% held by retail.

If the team decides to subject that small supply held by retail to further vesting, it would mean 86,000 retail traders would hold only 20-30% of supply, while just 6 entities would hold 70-80% of supply!

If World Liberty Financial further limits the low supply held by retail and subjects it to vesting for some reason, it would mean that just 6 entities (3x Early Supporters + JS, DWF & Aqua) would hold the majority of supply! This would be EXTREMELY BAD unfair and not good for the optics.

100% of pre-sale tokens will become transferable!

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“A portion of WLFI supply was sold to early supporters”

The team should clarify who counts as ‘early supporters’. Eligible round 1/2 investors, and/or protocols/entities that bought tokens OTC from the WLFI team? Both of the above would be fair and what I’d expect/interpret the proposal as-written.

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Early/Initial Supporters are defined in the Gold Paper:

DT Marks DEFI LLC, Axiom Management Group, LLC WC Digital Fi LLC

They hold 30% of the token supply, but their tokens are locked and not yet distributed in a multisig.

Pre-sale buyers are NOT early supporters, but they are how they are defined: PRE-SALE BUYERS.

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I REPEAT:
You are reading the Gold Paper literally, but your interpretation fails to ignore the economic and regulatory principles that most influence the sustainability of a token like WLFI.

Yes, the Gold Paper defines “Initial Supporters” and the 30% allocated to them is something that no one disputes.

What is at stake is not the existence of the allocation, but rather the way in which this distribution will be made. And this is where your reading fails seriously:
It is unacceptable that these 30% be given to a small closed group. These tokens must be distributed fairly and proportionally among the more than 85,000 holders, based on objective criteria such as participation, snapshots or contribution to the ecosystem.

:chart_decreasing: Concentrating millions of tokens in a few wallets is the fastest path to devaluation.

Even though these wallets represent “Early Supporters”, if the tokens are delivered in a hyper-concentrated manner, the market reacts negatively:

The token becomes vulnerable to a massive dump at any time.

Liquidity collapses, because a few control the majority of the supply.

The very “beneficiaries” of these millions end up with toxic assets, with no market to sell them.

In other words: they may receive millions… but these millions quickly become worth very little.

:stop_sign: International regulators have already signaled that such structures are a direct target.

Agency bodies such as the SEC (USA), ESMA (Europe) and Asian regulators are increasingly aware of unfair or centralized tokenomics.

When a few concentrate too many tokens:

The token can be classified as a (security), blocking listings on regulated exchanges.

It can be considered a speculative instrument without any real decentralization.

It is excluded from institutional indexes, such as funds, ETFs and centralized staking platforms.

Result?
Big investors flee, exchanges refuse to list, and the project stagnates even if it is supported by the most important man in the world.

:globe_with_meridians: Decentralization is the greatest asset of any cryptocurrency

The only sensible way to manage this 30% is to distribute it among the 85,000 current holders, based on snapshots, participation or transparent and fair criteria. This:

Ensures regulatory compliance;
Stimulates liquidity and trust in the secondary market;
Attracts an active community and developers, making the ecosystem lively.
Serious projects like Ethereum or Arbitrum only grew because they valued a broad and decentralized base, not because they concentrated everything on the former.

:bomb: Even with political or institutional support, the market does not forgive poor distribution.

We’ve seen this before:

The case of ICP (Internet Computer): large support, but concentrated distribution → price collapse.

(EOS) was one of the largest ICOs in history, but it failed precisely because it gave control to a few.

:white_check_mark: Conclusion: the fair distribution of the 30% among the 85,000 holders is not a favor, it is a strategic obligation.

If they are distributed to a small group as you are advocating, you and everyone else who receives millions will be the first to end up with worthless, illiquid tokens that are rejected by regulators and exchanges.

If you really want to protect the value of your investment, the only possible choice is clear:

:backhand_index_pointing_right: The 30% must be shared with the community. All holders count.

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Those 30% will not be shared with pre-sale buyers.

Those 30% belong to the Initial Supporters (Early Supporters), which are 3 entities clearly defined in the Gold Paper.

Their tokens are not yet distributed. With this proposal, a % of their tokens will be unlocked from the multisig wallet and distributed to them. In a second vote, we will decide how and when the remainder of their tokens will vest.

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Please do not share misinformation about WLFI :folded_hands:

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Pelo que entendi , os tokens que foram vendidos por $0,015 e $0,050 serão todos liberados . Os tokens que foram negociados com entidades maiores que representam 30% do total , entrará em votacão para definir qual percential será liberado imediatamente . Se for isso , podemos considerar como suplier inicial a totalidade dos tokens vendidos 25 bi , mais o que for liberado em votação sobre esses 30 bi .

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|Crash Risk|
We must avoid at all costs allowing the largest token holders to sell their assets indiscriminately, as this would severely compromise the price.
I believe it is more appropriate to impose selling limits based on the percentage of holdings.
|—|—|
|💣 Dumping|A few hands holding large amounts of tokens can crash the market at will.|
|🩻 Lack of organic liquidity|If few entities control the majority, asset circulation is effectively frozen.|
|🚫 Regulatory risk|The SEC and other bodies may classify the token as a “security” if it lacks decentralization.|
|📉 Past case warnings|Projects like ICP, EOS and others failed due to similar distribution flaws.|

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good explanation yes many people understand that will be unlocked 100% of the first 25 billion tokens for 85k holders this is the right strategy for the market the market should be healthy and go up well

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This is how I read it too. Would be good with clarity asap from the WLFI team.

IMO the team has been quite clear and it leaves no room for interpretation (100% of pre-sale tokens are unlocked and will become transferable, a % of Initial Supporters coin will unlock and be distributed, and in a 2nd vote, the community will decide on when/how their remaining coins unlock).

Unfortunately, there are some community members who insist on a different, entirely incorrect interpretation because they believe it will benefit them financially, which won’t be the case and they will end up being severely disappointed if it would go their way.

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It is not clear, and to say it is, is itself misleading.

They have to lay out exactly what is being voted on, which hopefully they will clarify during the upcoming comment period/prior to the vote.

You can’t make assumptions in what they say - this isn’t (and shouldn’t be) how it works. It’s like saying “Trump” is running for President, and you’re like, which Trump - Donald? Barron? Don Jr.?

Point being is I consider myself pretty well-informed and able to read this kind of stuff and it’s pretty complex and convoluted in how they’ve communicated the proposal. There are many ambiguous terms and policies, which again, will hopefully be clarified in the coming days. What is stated on the website has changed overtime vs the Gold Paper which has been pretty static – but to that point, they need to ensure they are communicating properly.

The team has done a pretty good job up to this point – but they could benefit from being more concise in their communications, especially in regards to proposals (unless they have a reason for being ambiguous/vague).

Agreed and thanks for the clarity. So how & when do you think the coin will be tradable on exchanges (or the WLFI app)? Will this require another vote?

I asked several AI sources to analyse the proposal and provide me with their conclusions.

EVERY SINGLE ONE concluded what I have written : 100% of pre-sale tokens will become transferable , the “unlock” refers to the Early Supporters tokens (30% locked and undistributed as of now).

Not sure why you guys insist on fighting this. The proposal is VERY clearly written.

Here are the AI responses:


AI ANALYSIS AND CONCLUSION OF PROPOSAL

  • Proposal: Make $WLFI tokens transferable to enable trading (peer-to-peer and secondary markets), open the ecosystem, and enhance community governance.
  • Pre-Sale Tokens (25% or 25B): Likely to become 100% transferable if the proposal passes, as no specific lock-up is mentioned, but this is not explicitly confirmed.
  • Early Supporter Unlock: A portion of the 30% (30B) allocated to Early Supporters will be unlocked and tradable upon approval. Remaining Early Supporter tokens require a second community vote for unlocking.
  • Team/Founder Tokens (2.5% or 2.5B): Excluded from initial unlock, subject to a longer vesting schedule.
  • Impact: Enables broader participation, increases token utility, and shifts to community-driven governance, but lacks clarity on pre-sale token transferability.
  • Vote: YES to make tokens tradable; NO to keep them non-transferable.

CLARIFICATION ON KEY QUESTIONS

  • Will pre-sale tokens become 100% transferable? The proposal implies that all $WLFI tokens, including the 25 billion sold in pre-sales, will become transferable if approved, as no restrictions are specified for pre-sale tokens.

  • Is there an unlock? Yes, but the unlock specifically applies to a portion of Early Supporter tokens (30 billion allocation). Pre-sale tokens are already distributed and don’t require an “unlock,” only transferability approval.

  • Does the unlock refer to Early Supporters? Yes, the unlock explicitly targets a portion of Early Supporter tokens, not pre-sale or team tokens.

  • Data Source: The proposal text, WLFI gold paper, and prior data (e.g., pre-sale details, Early Supporter allocation) inform this analysis. Some details (e.g., exact portion of Early Supporter tokens to be unlocked) are unspecified.


So let’s put this to rest please and stop spreading misinformation/confusion in the community!

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Always room for interpretation.
Let’s see. Things are moving, they know what they’re doing👍

1 Like