WLFI Backlash as 9 ‘Team Wallets’ Swing 59% Vote on USD1 Growth Proposal
World Liberty Financial is going through mounting criticism from its neighborhood after a governance vote approving a USD1 progress proposal handed with decisive assist from a small cluster of huge wallets.
The vote noticed objections from the neighborhood over the dearth of voting entry for locked WLFI holders, reigniting considerations about management, dilution, and the bounds of WLFI’s on-chain governance.
On-chain voting knowledge reviewed by market members shows that the highest 9 wallets backing the proposal accounted for roughly 59% of the overall voting energy.
The single largest pockets alone represented 18.786% of votes forged within the snapshot.
WLFI Vote Passes 78%, however Access Dispute Overshadows Outcome
Analysis shared by pseudonymous dealer and researcher DeFi^2 showed that a number of of those addresses are flagged by on-chain mapping instruments as team-linked or strategic associate wallets, successfully permitting a slender group of insiders to find out the result.
The proposal itself approved World Liberty Financial to deploy lower than 5% of its unlocked WLFI treasury holdings to assist the adoption of USD1, the venture’s dollar-backed stablecoin.
The vote, created on December 28 and closed on January 4, attracted 2,931 members and handed comfortably, with 3.3 billion votes, or 77.75%, in favor.
Votes in opposition to totaled 944.3 million, whereas abstentions had been negligible. The quorum degree reached 426%, far exceeding the brink required for validity.
The backlash has centered much less on the mechanics of the proposal and extra on who was capable of take part.
Many WLFI holders stay locked out of their tokens following the venture’s token technology occasion and can’t vote on governance issues till unlock situations are modified.
Several neighborhood members identified that whereas these holders are unable to affect selections, crew and associate wallets seem to have had full voting entry.
DeFi^2 described the episode as an “alarming governance vote,” arguing {that a} measure unrelated to token unlocks was pushed by regardless of repeated calls from holders to handle entry restrictions first.
Tokenholders opposing the proposal have additionally questioned its financial logic.
WLFI holders should not entitled to protocol income, in accordance with the venture’s personal documentation, which allocates 75% of income to the Trump household and 25% to the Witkoff household.
WLFI Holders Voice Frustration Over Incentives and Locked Supply
Against that backdrop, critics argue that utilizing WLFI tokens to incentivize USD1 progress will increase dilution with out providing a direct upside to tokenholders.
One tokenholder who voted in opposition to the proposal stated the venture had beforehand deployed greater than 9 figures of investor capital to build up belongings such as Bitcoin, Ether, and Chainlink, but WLFI holders noticed no tangible profit from these holdings.
Tensions elevated additional after on-chain knowledge showed a switch of 500 million WLFI tokens to Jump Trading shortly after the vote concluded, whereas early investor allocations stay locked.
Community members have described the scenario as uneven, with emissions rising and liquidity changing into out there to pick out counterparties whereas long-term holders anticipate unlocks.
Calls to launch the remaining 80% of tokens for early buyers have grown louder throughout social channels.
The governance dispute is unfolding as World Liberty Financial accelerates its broader enlargement.
On January 8, the group disclosed that World Liberty Trust had filed a de novo application for a U.S. national banking charter with the Office of the Comptroller of the Currency.
World Liberty Financial filed for a US nationwide banking constitution, searching for OCC oversight to carry its dollar-backed stablecoin USD1 absolutely contained in the regulatory perimeter. @worldlibertyfi#WLFI #OCC https://t.co/kDgbVB1c25
— Cryptonews.com (@cryptonews) January 8, 2026
If permitted, the constitution would permit the belief to subject and safeguard USD1 straight throughout the U.S. banking system.
Days later, on January 12, World Liberty Financial announced the launch of World Liberty Markets, a lending and borrowing platform constructed round USD1 and WLFI.
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