World Liberty Financial Floats Plan to Burn 10% of Insider WLFI Tokens

World Liberty Financial has submitted a governance proposal covering more than 62 billion WLFI tokens held by early backers and internal stakeholders, aiming to overhaul lockups and future supply. If approved, the plan would immediately destroy up to 4.5 billion WLFI allocated to founders, team members, advisers and partners—about 10% of that group's holdings. The team said the proposal has been posted to the governance forum for community discussion and framed it as a long-term alignment step for DeFi. The proposal also resets vesting across stakeholder groups. Early supporters, who collectively hold about 17 billion locked tokens, would shift to a four-year schedule featuring a two-year cliff followed by linear unlocking. No burn would apply to this cohort. Holders classified as founders, team members, advisers and partners—together holding more than 45 billion tokens—would face tighter terms. Those who opt into the revised structure would see 10% burned, with the remainder vesting over five years, including a two-year cliff. Stakeholders who decline would keep their tokens locked indefinitely while retaining governance rights. World Liberty Financial said the changes are designed to reduce a "governance overhang." Since launch, WLFI has run six governance proposals, drawing participation between 2.7 billion and 11.1 billion tokens. The team said only about 23% of eligible locked tokens have voted so far, leaving most inactive. The project said the updated framework is intended to make token distribution more transparent and predictable, while shifting governance influence toward engaged participants. The initiative comes as World Liberty Financial prepares for its next growth phase following the rollout of products including its USD1 stablecoin, lending and borrowing markets, and integrations with centralized exchanges. The proposal is scheduled for a seven-day vote and requires a quorum of 1 billion tokens and a simple majority to pass. After deployment, token holders will have 10 days to accept the new vesting terms. Tokens remain locked by default if no action is taken, and any approved burn would be executed immediately. If the proposal fails, current terms will remain in place.