WLFI proposes burning 4.5B tokens and new vesting rules after a dispute with Justin Sun, aiming to build trust and long-term stability.
WLFI has announced a major plan that could change its future. The project disclosed a proposal to burn up to 4.52 billion tokens. Furthermore, this announcement follows a public feud with Justin Sun. As such, the news rapidly spread throughout the crypto market.
WLFI Proposes Major Token Burn and New Vesting Rules
The total number of tokens in the proposal of WLFI is approximately 62.28 billion. Of this, 45.24 billion tokens are owned by founders, team members, and advisors. These tokens will have a 2-year cliff and a 3-year vesting plan. Moreover, they will have to pay a 10% burn in case the proposal is accepted.
We’ve just posted a governance proposal to the forum for community discussion, and we believe it represents one of the strongest long-term governance alignment signals in DeFi.
Here's what it does 🧵
— WLFI (@worldlibertyfi) April 15, 2026
This implies that as many as 4.52 billion tokens might be eliminated forever. As a result, the total supply of WLFI tokens may decrease significantly. In the meantime, 17.04 billion tokens of the early supporters will be under another plan. These tokens will have a 2-year cliff and a 2-year vesting period.
Related Reading: WLFI vs Justin Sun: Public Dispute Sparks Legal Warning | Live Bitcoin News
However, early supporters will not face any token burn. Thus, they will retain their entire allocation. Conversely, those holders who fail to accept the new terms will be locked. As a result, their tokens will not be discharged as they are.
According to WLFI, this proposal will enhance long-term governance. It also aims at enhancing investor and user confidence. Thus, the project would like all the key participants to remain dedicated to the project for at least 2 years.
Dispute with Justin Sun Raises Market Concerns
The proposal comes after a heated dispute between WLFI and Justin Sun. The debate began on the social media site X. Both parties made bold statements and even legal threats. Consequently, this scenario instilled fear in crypto investors.
The conflict focused on smart contract claims and borrowing risks. These were problems that were associated with Dolomite platform activities. Thus, the safety and transparency issues grew. The token system and project background of WLFI started to raise questions among many users.
After this tension, WLFI came up with the new proposal. The aim is to solve the community issues and minimize uncertainty. Furthermore, the project would like to demonstrate the evident interest in the long-term stability.
WLFI also highlighted its recent achievements to support its plan. As an illustration, it introduced USD1, which it purports to be a rapidly expanding stablecoin. Additionally, it applied for a national trust bank charter. Chainlink Proof of Reserves technology was also incorporated in the project.
Moreover, WLFI increased its services in various blockchains. They are the Ethereum, BSC, and Solana networks. It also created such tools as AgentPay to make digital payments. Thus, the team believes that the ecosystem is steadily increasing.
Overall, the proposal marks a major moment for WLFI. It is a combination of token burns, stringent vesting policies, and governance reforms. Therefore, the market is keenly following the result of this vote. If approved, it may reshape WLFI’s future and rebuild investor confidence.
