Trump-Backed WLFI Token Hits Record Low Amid Controversial Governance Vote To Lock Up 63 Billion Tokens

• WLFI fell more than 7% to a record low of $0.059 after a governance proposal to lock up over 63 billion tokens entered the voting phase.
• Early voting shows strong support, with 99.95% of votes in favor and quorum already reached.
• Retail sentiment on Stocktwits turned ‘bullish’ despite the price decline, and chatter rose to ‘high’ from ‘extremely low’ levels. 

Trump family-backed World Liberty Financial's WLFI token plummeted to a record low on Thursday after the cryptocurrency project’s new governance vote to lock up more than 63 billion WLFI tokens went live.

WLFI’s price fell over 7% in the last 24 hours to around $0.059 in the last 24 hours, marking an all-time low for the cryptocurrency token, according to CoinGecko data. On Stocktwits, retail sentiment around the coin however flipped to ‘bullish’ from ‘bearish over the past day. Chatter rose to ‘high’ from ‘extremely low’ levels. 

Meanwhile, Bitcoin (BTC) rose 1.4% in the last 24 hours to around $76,200. Retail sentiment around the apex cryptocurrency trended in 'neutral' territory over the past day, accompanied by chatter at 'normal' levels. 

Why Was The WLFI Token Falling?

The dip came after WLFI’s governance proposal that would lock up more than 63 billion WLFI tokens opened for community voting on Wednesday afternoon. Under the plan, early investors face a two-year lockup cliff, followed by two more years of gradual release. Founders, team members, and advisers would be subject to the same initial two-year cliff, with a longer three-year linear vesting schedule afterward.

Retail Traders Back Proposal While Critics Raise Concerns

Many retail traders on Stocktwits supported the proposal and anticipated the token could cross $1 in the next few months.

On-chain data showed strong early support. Roughly 99.93% of votes cast so far are in favor of the proposal. The required quorum of 1 billion tokens has already been met, with about over 7 billion tokens backing the measure and just 5.2 million opposed.

In post on X, Simon Dedic, founder of Moonrock Capital, described the proposal as resembling a rug pull and questioned its timing. He noted that the two-year lockup period broadly aligns with the remainder of Donald Trump’s current term in office.

Tron founder Justin Sun, who recently filed a lawsuit against WLFI, called it one of the “most absurd” proposals he had ever come across.

President Donald Trump is listed that the co-founder emeritus on the project’s official website. Donald Trump Jr. and Eric Trump are also listed as co-founders. Trump’s youngest son, Barron Trump, is the ‘DeFi Visionary’ and Web3 Ambassador of the project. 

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