WLFI Floats Plan to Burn 4.5B Tokens as Governance Fight and User Anger Intensify

World Liberty Financial (WLFI) has put forward a governance proposal to overhaul its tokenomics, revising vesting terms for roughly 62.3 billion WLFI tokens and introducing an optional burn that could remove about 4.5 billion tokens from supply. The proposal targets allocations tied to early supporters as well as the project's team-related buckets. If founders, team members, advisors, and partners opt into the updated terms, up to 10% of their holdings—around 4.5 billion WLFI—would be permanently burned. Under the new schedule, early supporters holding more than 17 billion tokens would move to a two-year cliff followed by a two-year linear vesting period. Team and partner allocations would extend further, with a two-year cliff and a three-year vesting timeline. Participation is structured as opt-in. Holders who decline the new terms would keep their tokens locked indefinitely while maintaining governance rights. The vote lands as scrutiny grows over WLFI's risk exposure and governance practices. On-chain data has pointed to the project using up to 5 billion WLFI as collateral to borrow more than $75 million in USDC, fueling liquidity concerns. Separately, Justin Sun alleged WLFI included undisclosed blacklisting functionality in its token contracts that could freeze user funds and limit participation, and questioned the transparency of the governance process. WLFI rejected the allegations, called them unfounded, accused Sun of misconduct, and said it is prepared to defend its position in court. Community reaction has been mixed. Some users argue the longer lockups delay access for early backers. Others say frozen wallets have prevented them from voting, raising concerns about whether the governance process is fair. WLFI has noted that historically a large share of locked tokens has remained inactive in votes. WLFI's proposed restructuring would materially reshape supply dynamics through a potential 4.5 billion token burn and revised vesting terms covering more than 62 billion tokens, leaving the project's credibility and future token supply under closer market watch.