Tokens Subject to This Proposal
- Early supporter locked tokens: 17,043,666,558 WLFI (Reflects currently confirmed locked early supporter tokens, but may increase if holders with unclaimed prior allocations claim and enter the locked pool before this proposal takes effect)
- Founder, team, advisor, and partner locked tokens will all be pushed to a longer vesting schedule: 45,238,585,647 WLFI
- Total subject to this proposal: 62,282,252,205 WLFI
Upon passage, up to 4,523,858,565 WLFI — 10% of the founder, team, advisor & partner locked token allocation — will be permanently burned and removed from total supply immediately. This takes effect the moment this proposal passes.
Where We Are & Why This Matters Now
When WLFI launched, WLFI made a bet that compliant, institutionally-ready DeFi was not only possible but inevitable. A lot has since happened in the WLFI ecosystem.
Governance Participation History
Since inception, WLFI has passed six governance proposals spanning protocol infrastructure, tokenomics, and ecosystem growth. Participation across those votes ranged from 2.7B to 11.1B WLFI:
- Proposal to launch Aave V3 instance on Ethereum Mainnet — 8.0B WLFI
- Proposal: Test Airdrop Functionality by distributing USD1 to all WLFI holders — 6.8B WLFI
- Proposal: Make WLFI token tradable — 11.1B WLFI
- Proposal: Use 100% of WLFI Treasury Liquidity Fees for Buyback & Burn — 4.4B WLFI
- Proposal: Utilize Unlocked WLFI Treasury Holdings to Support USD1 Growth — 4.2B WLFI
- Proposal: WLFI Governance Staking System — 2.7B WLFI
Even at peak participation, active governance represents roughly 23% of the locked supply subject to this proposal. The remaining 77% — tokens that have never cast a vote across any proposal in the protocol’s history — represent the governance overhang this proposal is designed to help resolve. Holders who have never participated are not disqualified from doing so; but the protocol should no longer carry indefinite uncertainty about whether or when they will vote. This proposal gives every locked holder a more clear, time-bounded moment to declare their intent.
USD1 became the fastest-growing stablecoin in history, is the first stablecoin to adopt Chainlink Proof of Reserves which makes the reserves backing USD1 fully available onchain 24/7 verified by Chainlink an industry trusted 3rd party source, and is deployed across ETH, BSC, SOL, and a growing number of additional chains. An application has also been established to establish World Liberty Trust Company, NA to directly issue USD1 as a Genius Act compliant payment stablecoin. The WLFI interface now provides access to a lend/borrow market and other third party applications. AgentPay SDK has been built as a base layer to help power agentic payments by third parties using USD1, enabled EIP-3009 on USD1 allowing AI agents to transact autonomously on a user’s behalf — the infrastructure layer that makes programmable, agentic payments possible at scale. WLFI has active partnerships with many of the major CeFi digital asset exchanges globally.
The WLFI governance token has been fully functional as a digital tool to participate in governance since launch and required no further development, but we’re now at an inflection point for the greater WLFI ecosystem. The foundation is built. What comes next requires a governance structure that reflects genuine long-term conviction — not just from the team, but from every holder with a locked position. This proposal is how to get there.
Early Supporter Vesting Schedule
All locked early supporter tokens — 17,043,666,558 WLFI — will be subject to a 2-year cliff followed by a 2-year linear vest, with tokens beginning to unlock at year 2 and fully distributed by year 4. This schedule takes effect from the date this proposal passes. No tokens are burned under this schedule.
Early supporters were critical to getting WLFI to where it is today. This structure gives them full token retention while ensuring that access to supply of governance tokens reaching the market for governance participation does so in a measured, predictable way that the broader market can anticipate. Holders who do not affirmatively accept this new vesting schedule will continue to have their tokens locked indefinitely and continue to be able to use all of their tokens for participation in governance, subject to the terms of any future unlock proposals.
In order to accept this new vesting schedule, participants will be required to electronically make acknowledgements and agreements relating to the terms and meet any eligibility requirements determined to be necessary or advisable under applicable law.
Founder, Team, Advisor & Partner Vesting Schedule
All locked tokens held by founders, team members, advisors, and partners — 45,238,585,647 WLFI in total — will have the option to elect less favorable unlock terms or remain locked indefinitely. If all founders, team members, advisors, and partners opt in:
- 10% of the total locked token allocation — 4,523,858,565 WLFI — is permanently burned and removed from total supply immediately upon proposal passage
- The remaining 90% — 40,714,727,082 WLFI — is placed on a 2-year cliff followed by a 3-year linear vest, with tokens beginning to unlock at year 2 and fully distributed by year 5.
This schedule was chosen deliberately. It is the least favorable unlock terms in this proposal as it is subject to a mandatory burn that early supporters do not face and is subject to a longer vesting schedule.
The voluntary burn of up to 4,523,858,565 WLFI is a permanent, on-chain signal of the conviction of the founders, team members, advisors, and partners who helped build this protocol. These tokens will not be recoverable under any future governance action. This is their public, on-chain commitment to every token holder in this community.
In order to accept this new vesting schedule, these holders will be required to electronically make acknowledgements and agreements relating to the terms and meet any eligibility requirements determined to be necessary or advisable under applicable law.
If a founder, team member, advisor, and partner does not affirmatively accept this new vesting schedule, their tokens will not be burned and they will continue to have their tokens locked indefinitely and continue to be able to use all of their tokens for participation in governance, subject to the terms of any future unlock proposals.
Rationale
The current lock structure was intended to place tokens with holders who agreed to a long-term commitment to governance. The WLFI governance token has been fully developed and functional for its sole utility as a governance tool since launch, but the broader WLFI ecosystem has fully matured from when the governance token launched. The WLFI ecosystem now has products, real institutional partnerships, on-chain proof of reserves, and a unique DeFi footprint. The interest and preferences of our early supporters may also have evolved and the governance structure should reflect that maturity.
This proposal establishes a clear, structured vesting framework across all holder cohorts. Early supporters receive full token retention on a defined 4-year distribution schedule. Founders, team members, advisors, and partners accept a permanent burn alongside a 4-year distribution timeline — and are the only cohort that will have tokens burned. Either outcome gives the community a more clear, bounded picture of governance preferences and future supply and helps ensure that governance is in the hands of holders who are genuinely committed to be here for what comes next.
On-Chain Parameters
- Voting period: 7 days
- Quorum requirement: 1,000,000,000 WLFI tokens
- Passing threshold: Simple majority of tokens voted
- Acceptance window: 10 days from when the functionality is deployed
- Default if no acceptance made: Tokens of holders who do not affirmatively accept the vesting schedule will continue to be locked indefinitely and continue to be able to use all of their tokens for participation in governance, subject to the terms of any future unlock proposals
- Burn execution timing for founders, team, advisors & partners: Immediately upon proposal passage, prior to cliff commencement
- In order to accept the vesting schedule, participants will be required to electronically make acknowledgements and agreements relating to the terms and meet any eligibility requirements determined to be necessary or advisable under applicable law
- NO vote outcome: Existing lock terms preserved without modification