WLFI Proposes Major Governance Overhaul
The WLFI project has put forward a significant governance proposal to its community, focusing on restructuring its token economics to better align long-term incentives between the project and its stakeholders.
Detailed Token Lock-up Mechanism
The proposal outlines a two-tiered approach for different token allocations:
- Core Contributor Allocation: Approximately 45.2 billion tokens allocated to advisors, institutional partners, founders, and team members will be subject to a “2-year full lock-up followed by 3-year linear vesting” schedule. Participants opting into this new scheme are required to burn 10% of their allocated tokens, potentially removing up to 4.5 billion tokens from circulation permanently.
- Early Supporter Allocation: Around 17 billion tokens designated for early backers will follow a “2-year full lock-up plus 2-year linear release” model without any mandatory burn. Tokens associated with addresses that do not actively accept the new terms will be locked indefinitely.
Implications for the Ecosystem
If ratified by community vote, a total of 62.2 billion WLFI tokens will remain locked and actively participating in governance for a minimum of two years. The project describes this move as one of the strongest signals of long-term governance alignment within the DeFi space. This strategy is expected to substantially reduce sell-side pressure while demonstrating a firm commitment from core contributors, thereby potentially enhancing ecosystem stability and bolstering investor confidence in the project's future.