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WLFI Investors may lose their governance voting rights if they only stake 20% of tokens.
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For a yield of 2%, the staking proposal calls for a 180-day locking period.
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WLFI is down from a high of $0.46 to a low of $0.09-$0.10. This is a drop by more than 75%.
World Liberty Financial (WLFI), a crypto project associated with the family of US president Donald Trump, has come under renewed scrutiny after a new proposal for governance raised concerns among investors.
The project raised over $550 million in investment with the promise of early token holders helping to guide the platform’s decisions. The latest governance proposal, however, could reduce the voting powers of early investors unless those investors agree to lock up their only tokens that they can currently sell.
The proposal targets approximately 20% of WLFI tokens that are already unlocked, tradable and circulating. According to the plan, token holders would lose their voting rights for governance unless they staked them for at least a 180-day period.
The project team can change the rate of the 2% annual return.
Staking is the process of locking tokens so that investors cannot sell them.
Unlock Timeline Is Still Uncertain
Investors are faced with a difficult decision. Governance votes include decisions about when the remaining 80% locked tokens will release.
Investors must lock their tradable tokens if want a greater voice in the decisions made about unlocking their remaining holdings.
Most crypto projects announce the schedule for token unlocking before or during their initial token sale. These schedules inform investors when locked tokens become tradable. WLFI, on the other hand has not published a similar timeline.
About 80% of the tokens owned by early outside investors are still locked up, and there is no official release date.
Price Decline and Liquidity Stress
Concerns have also been raised about WLFI’s performance on the market.
The token reached an ATH around $0.46 after launch, but within days, it dropped below $0.24. This continued a steady decline on all exchanges.
By March 8, 2026 the token’s price was between $0.09 and $0.05, a drop of over 75% from earlier levels.
Investors have been made to struggle by liquidity limits. Early buyers could only sell 20% of their tokens. The remaining 80% were restricted by project rules. Some investors claim that this structure makes it hard to exit positions when the market is down.
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