TechFlow reports on January 21 that crypto KOL DeFi^2 posted on social media criticizing a recent governance proposal from World Liberty Fi, which has sparked controversy. The proposal called for using 5% of the unlocked WLFI treasury holdings to promote the growth of USD1. It was alleged that the proposal was pushed through by the team and strategic partners through coordinated voting, while ordinary investors’ WLFI tokens remain locked and unable to participate in governance.
According to WLFI’s official documentation, the protocol's revenue distribution allocates 75% to the Trump family and 25% to the Witkoff family, with token holders receiving no share of protocol revenues. Critics argue that the USD1 growth proposal, forcibly passed by the team, is effectively a move to sell WLFI tokens to increase the team’s own profits, while retail investors' tokens remain mandatorily locked.
Following the vote, observers noted that 500 million WLFI tokens were transferred to Jump Trading. Currently, WLFI has a market cap of approximately $17 billion, but its value is under scrutiny due to the lack of real governance rights, no revenue sharing, and increasing selling pressure from new token releases.
