The Trump family-backed World Liberty Financial has proposed to unlock 62.3 billion WLFI governance tokens on Tuesday, less than a week after CoinDesk reported that the company had used 5 billion of its own tokens as collateral on lending platform Dolomite to borrow $75 million in stablecoins.
The proposal divides the locked tender into two groups. Early supporters with 17 billion WLFI would receive a 2-year cliff followed by a 2-year linear vest that retained each symbol.
Founders, team members, advisors and partners with 45.2 billion WLFI would face a 2-year cliff and 3-year vest, but with 10% of their allocation, about 4.5 billion tokens, they burned immediately at the passage. (Burns refer to the permanent removal of tokens from the supply, usually by sending to an address that is not controlled by anyone.)
In practice, this means that insiders would surrender 4.5 billion tokens in exchange to begin unlocking 40.7 billion, which was previously locked indefinitely with no fixing plan attached. These tokens had no path to liquidity before this proposal.
