WLFI Under Fire After USD1 Growth Proposal Moves Forward Amid Voting Concerns

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World Liberty Financial (WLFI) is receiving criticism after a governance vote that allowed a USD1 growth initiative to pass, with notable dissent from the community due to restricted voting rights for locked WLFI token holders.

Voting Power Discrepancies

Data from the onchain voting revealed that nearly 60% of the voting influence was concentrated among nine wallets, many of which are identified as allied with the WLFI team or its strategic partners. This situation has raised significant concerns regarding the control wielded by this select group.

The leading wallet alone accounted for 18.786% of the overall voting power, a fact that is particularly troubling for locked holders who have been unable to make their voices heard since the token generation event (TGE).

DeFi^2, a pseudonymous trader and analyst, highlighted this issue on X, emphasizing the lack of participation opportunities for genuine users.

Top wallets push through USD1 growth proposal. Source: WLFI

Proposal Raises Concerns Among Tokenholders

As per the same researcher, the priority given to the USD1 proposal questions the intention behind using governance for protocol enhancement rather than addressing existing restrictions limiting many investors. It was noted that WLFI holders are not granted any shares of protocol revenue, with 75% being allocated to entities tied to the Trump family and 25% to those linked to the Witkoff family.

Tokenholders expressed concerns, suggesting that the plan could further impoverish investors without providing any tangible benefits, advocating instead for WLFI to liquidate their assets instead of diluting existing investors.

Future Concerns

Cointelegraph has reached out to WLFI for their position on these events but has yet to receive a response by the time of this publication.

Related Information

World Liberty Pursues National Banking Charter

In recent developments, WLFI applied for a national trust banking charter to streamline their USD1 stablecoin services and eliminate reliance on third parties. This step aims to enhance their operational framework, facilitating seamless conversions between USD and their stablecoin for institutional clients.