World Liberty Financial Token Falls on Unlock Proposal News
World Liberty Financial's governance token WLFI dropped 14% to $0.08 following the announcement of a structured token unlock proposal, which aims to gradually release locked tokens to early holders. Despite concerns over liquidity and a $150 million stablecoin loan backed by WLFI collateral, the project denied liquidation risks and promised additional collateral if needed. The market capitalization fell by $427 million to $2.58 billion amid investor uncertainty about token supply increases.
TLDR WLFI price declined 14% to $0.08 within 24 hours. Market capitalization dropped by $427 million to $2.58 billion. World Liberty Financial plans a structured token unlock proposal. The project holds $400 million in WLFI collateral on Dolomite. The team denied liquidation risks and pledged additional collateral if needed. World Liberty Financial’s (WLFI) governance token dropped sharply after the project outlined a token unlock proposal. The price fell to $0.08, marking a 14% daily decline. At the same time, market capitalization declined by $427 million to $2.58 billion. World Liberty Financial Token Drops on Unlock Plan World Liberty Financial confirmed it is preparing a governance proposal to unlock WLFI tokens for early holders. The project said the plan includes a structured vesting schedule to control supply release. Currently, about 75% of WLFI tokens remain locked and cannot be traded. The team acknowledged “strong demand” from early participants seeking liquidity access. The token launched as a non-transferable digital asset and later gained a valuation based on limited circulating supply. Public sales distributed around 20% of the total supply to investors. World Liberty Financial raised $550 million from about 85,000 participants during two token sales. Token Unlocks data valued those distributed tokens at nearly $2 billion on paper. The team stated that the unlock proposal would not release all tokens at once. It added that a “long-term vesting and unlock schedule” will guide the process. Let's talk about the FUD going around our WLFI Markets lending position.It's wrong. Here's what's actually happening — and why the real story is a lot more interesting. — WLFI (@worldlibertyfi) April 9, 2026 DeFi Loan Activity Sparks Liquidity Concerns World Liberty Financial defended its $150 million stablecoin borrowing activity through the Dolomite protocol. The loans are denominated in USDC and backed by WLFI collateral. Critics raised concerns about liquidity...
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