Date: July 21, 2025
Summary:
This proposal calls for an immediate second governance vote to fully unlock all remaining WLFI tokens for early supporters, eliminate any phased rollout, and expedite full tradability on major exchanges without further delays. It draws directly from widespread community feedback expressing annoyance and frustration over the prolonged non-transferability of tokens since the 2024 sale. The recent 99.94% approval for partial tradability (concluded July 17, 2025) is a positive step, but it does not go far enough. Delaying full unlock risks further eroding trust, diluting value, and missing market opportunities. By acting now, WLFI can align with true DeFi principles, empower holders, and drive adoption.
Background:
World Liberty Financial (WLFI) raised $550 million through token sales in 2024 and early 2025, attracting over 85,000 participants with promises of decentralized finance innovation. However, tokens remained non-transferable for nearly a year, limiting their use to governance only. While the team has acknowledged community demands (e.g., “You asked to make $WLFI transferable — we heard you”), the slow pace has led to significant backlash. Community members on platforms like X (formerly Twitter) and in crypto analyses have voiced strong criticisms, highlighting how these delays undermine the project’s credibility and utility. This proposal aggregates their most persuasive arguments to advocate for swift action.
Key Arguments from Community Feedback (Compiled from Public Criticisms and Analyses):
Based on investor frustrations shared in crypto media, forums, and social discussions (e.g., from users like @sabby_eth and broader critiques in outlets like 99Bitcoins, Medium, and Bitrue), here are the core reasons why further delays are harmful and why immediate full unlock is essential. These are direct echoes of community sentiments to ensure WLFI remains community-driven:
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Locked Capital and Missed Market Opportunities:
Many investors are annoyed that their funds have been tied up since the 2024 sale, preventing them from trading, staking elsewhere, or capitalizing on the ongoing crypto bull market. For instance, critics note that non-transferability creates “no exit strategy,” leading to potential financial losses as market conditions evolve. One frustrated engineer (@sabby_eth) highlighted how this locks users out of liquidity, turning WLFI into a “frustrating hold” rather than a dynamic asset. Argument: Immediate full unlock would free capital, allowing holders to participate in broader DeFi ecosystems and boost WLFI’s real-world adoption through increased trading volume. -
Erosion of Trust and Perception of Poor Management:
Delays have fueled perceptions that WLFI prioritizes insider interests over community needs, deviating from DeFi’s core principles of decentralization and transparency. Community members criticize the lack of detailed operational plans and slow progress, with some calling it a “deviation from DeFi norms” that favors personal payouts (e.g., Trump family profits reported at $57 million) over ecosystem reinvestment. Argument: Prolonged restrictions make investors feel trapped in a potential “rug pull” or mismanaged project, damaging WLFI’s reputation. Accelerating unlock would rebuild trust by demonstrating responsiveness, encouraging more participation in governance and preventing community exodus. -
Limited Utility and Lack of Differentiation:
Critics argue that WLFI tokens currently offer “no real utility” beyond voting, making them less appealing compared to competitors like Aave or Chainlink integrations. Frustration stems from the project’s failure to deliver promised features quickly, with some noting it lacks clear differentiation in a crowded DeFi market. Argument: Full tradability now would enhance utility by enabling peer-to-peer transfers, staking rewards, and exchange listings, aligning WLFI with its vision of “financial freedom” and attracting new users/institutions (as hinted by co-founder Zak Folkman). -
Regulatory and Political Risks Amplified by Delays:
Community feedback emphasizes how delays heighten regulatory uncertainties, especially with WLFI’s Trump ties potentially inviting SEC scrutiny or political bias concerns. Some supporters worry that prolonged non-tradability could lead to scandals, hacks, or legal issues, damaging not just WLFI but broader crypto adoption. For example, analyses warn that uneven token distribution (e.g., large insider allocations) could trigger dilution if unlocked unevenly. Argument
Included Tariff policy being reactivated in August which could have negative impact on ecosystem, community and project itself
Fair Distribution of the Remaining 30%.
The remaining 30% of WLFI tokens will be distributed equally among the 85,110 current holders (or the exact number of eligible wallets);
No differentiation will be made based on the number of tokens held; each valid wallet will receive the same absolute amount;
The goal is to reward trust and early adoption in a fair, decentralized, and non-speculative manner.
Technical and Strategic Justification:
With only 100 million tokens unlocked, and reaching a market cap similar to Bitcoin, the individual value of the WLFI token could reach USD 13,000;
In this scenario, each participant with access to 1,000 tokens annually would have a potential income generation of USD 13 million per year, in a continuous and decentralized manner;
The annual unlock limit prevents value dilution, ensures predictability, and promotes sustainable growth;
Equitable distribution strengthens the sense of fairness and community cohesion, protecting against future centralization.
Expected Impacts:
Preservation of token value in the long term
Protection against sell-offs after unlocks
Equal participation in future wealth creation
Stimulation of strategic holding and active governance
Institutional attractiveness through a deflationary and stable model
Yes — I support the idea of immediate second voting and the equitable distribution of 30% among the 85,110 holders
No — I do not support this proposal as presented.
Abstain
Final Comments
WLFI has a unique opportunity to create a truly innovative, sustainable, and fair wealth generation model. This proposal aims not only to protect the project’s future but also to ensure that every member of the community reaps the rewards of the value they helped to build