WLFI Token Proposal Controversy: 5% Unlock Limit Sparks Community Disagreement

【BitPush】World Liberty Financial recently proposed a new plan regarding WLFI token expenditures, aiming to unlock up to 5% of the token inventory to support its USD1 stablecoin partnership. At first glance, there doesn’t seem to be an issue, but this proposal has caused quite a stir within the community.

Opposition comes from investors who already hold WLFI—they are concerned that unlocking a large amount of tokens for market incentives could put downward pressure on the price. More importantly, about 80% of WLFI is still locked, meaning most holders’ tokens haven’t entered circulation yet. Releasing 5% of the inventory now would obviously be unfair to those with locked positions.

However, supporters’ logic is also valid—they believe that using these funds to incentivize the development of the USD1 ecosystem is worthwhile, as in the long run, increased ecosystem activity will truly unlock the project’s value.

That said, the project’s funding was quite successful in the past, raising approximately $550 million through token sales. But the reality is harsh—WLFI has already fallen about 60% from its all-time high. Against this backdrop, the community is especially cautious about any token expenditure. Whether this proposal passes or not ultimately reflects the market’s expectations for the project’s future prospects.