WLFI faces backlash over proposal to reduce investor voting rights: Bloomberg

World Liberty Financial (WLFI) is facing investor concern over a new governance proposal, Bloomberg reported. The project had raised over $550 million by promising early investors the right to participate in determining its direction. However, critics point out that the recent proposal is structured in a way that could reduce the voting power of some investors. The core of the controversy lies with the roughly 20% of tokens currently in circulation. Under the proposal, these tokens will lose their governance voting rights unless they are staked. To maintain their say, investors must voluntarily lock up their tokens for a minimum of 180 days, for which they will receive a 2% annual yield in WLFI tokens. A key issue is that one of the major items investors may vote on is the unlock schedule for the remaining 80% of locked tokens. Bloomberg explained that WLFI has not disclosed a clear plan for this unlock schedule. While crypto projects typically announce unlock schedules and volumes before a token sale, approximately 80% of tokens held by external WLFI investors remain locked more than a year after the initial sale. In response, the WLFI project team denied that the staking proposal is intended to reduce short-term selling pressure. WLFI stated that governance decisions should reflect the views of participants with long-term interests aligned with the ecosystem, rather than those of short-term speculators. The proposal is currently undergoing an official vote, which began on March 5 and is scheduled to conclude on March 12.