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    Home»AI»WLFI Governance Vote Sparks Controversy Over Locked Tokens
    WLFI Governance Vote Sparks Controversy Over Locked Tokens – featured image
    A governance vote has ignited backlash among WLFI holders, highlighting concerns over locked tokens and concentrated voting power.
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    WLFI Governance Vote Sparks Controversy Over Locked Tokens

    CryptoCoinBizzBy CryptoCoinBizzJanuary 21, 2026No Comments3 Mins Read
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    A recent governance vote at World Liberty Financial Inc. (WLFI) has left numerous token holders feeling disenfranchised. Many of those who purchased WLFI tokens before the vote have voiced their frustrations on social media and blockchain forums, claiming they were effectively shut out while a small faction pushed the treasury plan to success.

    Locked Tokens Leave Many Without A Voice

    Recent reports indicate that around 80% of WLFI tokens sold to investors remain locked, rendering the majority of holders unable to participate in the treasury-related voting. This lack of access has become a focal point for critics who argue that it is unjust for the project to allocate community assets without ensuring comprehensive involvement.

    Discussion threads across various platforms are bubbling with calls for the establishment of a transparent unlock strategy and clearer governance guidelines to prevent such scenarios from recurring.

    Concentrated Votes From Few Wallets

    Analysis of the governance vote reveals an alarming trend: a small number of wallets wield significant influence over decision-making. Reports reveal that the top nine wallets controlled nearly 60% of the voting power, with one dominant address alone holding a considerable portion.

    The governance proposal to use a portion of the unlocked treasury to incentivize USD1 adoption has passed with 77.75% of the vote in favor.

    This happened because the community showed up, evaluated the proposal, and made a clear decision about the direction of the WLFI ecosystem.…

    — WLFI (@worldlibertyfi) January 4, 2026

    The official vote tally confirmed that around 77.75% of votes cast supported the proposal. However, the significant turnout from a limited voter base has done little to alleviate concerns, with detractors continuing to highlight the locked-token issue as a major contributor to the ongoing discontent.

    What The Proposal Would Use The Funds For

    The approved plan entails utilizing a portion of the unlocked WLFI treasury to bolster USD1, the project’s designated stablecoin. Language within the proposal stipulates that the allocation would not exceed 5% of the unlocked treasury holdings.

    Proponents argue that such financial incentives and partnerships could enhance the usability of USD1, potentially increasing activity across the WLFI network.

    Conversely, critics express concern regarding expenditures made prior to resolving issues of token accessibility and governance fairness, with some alluding to past volatility resulting from partial token unlocks as a reason for caution.

    Haven’t seen anyone else talk about this yet, so I wanted to bring up an alarming governance vote by World Liberty Fi this month that appears to be the start of a slow extraction of value from WLFI holders by the team:

    What you see above appears to be a rigged vote, where the… pic.twitter.com/CGsj7vVUUk

    — DeFi^2 (@DefiSquared) January 20, 2026

    Pressure On Leadership And Next Steps

    The fallout from this governance vote has placed immense pressure on the WLFI leadership team, pushing for a clear timetable for unlocking the remaining tokens as well as a reevaluation of the project’s voting rules to ensure that major economic decisions receive broader support from all holders.

    Trump Family Connection To WLFI

    Notably, the connection between WLFI and the Trump family, including former US President Donald Trump, has drawn significant media attention. Their prior investment and advisory roles raise questions about whether such high-profile links influence governance choices and treasury decisions.

    This association adds another layer of scrutiny to the ongoing debate surrounding locked tokens and the concentration of voting power within the WLFI ecosystem.

    Featured image from Gina Ferazzi/Los Angeles Times, chart from TradingView

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    CryptoCoinBizz

    CryptoCoinBizz is a leading cryptocurrency magazine focused on delivering insightful analysis, breaking news, and expert opinions on the dynamic world of digital currencies. Our mission is to empower readers with essential knowledge of blockchain technology and market trends. With a team of experienced journalists and industry experts, we provide valuable content for both novice and seasoned investors, fostering a community dedicated to informed decision-making in the evolving landscape of cryptocurrency.

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