- Top nine WLFI wallets controlled 59% of voting power, raising governance concerns.
- USD1 growth proposal criticized for diluting investors without direct revenue benefits.
- WLFI expansion continues with banking charter application and lending platform launch.
World Liberty Financial (WLFI) is facing scrutiny after its recent governance vote approved a USD1 growth proposal, despite widespread concerns about limited voting access for locked WLFI holders. The controversy highlights questions around governance fairness and the influence of large, strategic wallets in the protocol.
Concentration of Voting Power Raises Eyebrows
Onchain data shared by pseudonymous crypto researcher DeFi^2 shows that a handful of wallets dominated the vote. The top nine addresses, flagged as team-linked or strategic partners, controlled roughly 59% of total voting power. Notably, the single largest wallet contributed nearly 18.8% of votes, giving a small cluster of insiders effective control over the proposal.
“This is in contrast to the real voters lower in the screenshot, who have all been locked from accessing their WLFI tokens since TGE,” DeFi^2 wrote on X, referring to the initial token generation event. Locked tokenholders were unable to participate until the team permitted unlocks, creating a clear disparity in governance influence.
USD1 Proposal Sparks Concerns Over Tokenholder Incentives
Critics argue the USD1 growth proposal prioritizes expansion over the interests of regular WLFI holders. According to DeFi^2, WLFI’s Gold Paper allocates 75% of net protocol income to entities linked to the Trump family and 25% to the Witkoff family. Regular investors, meanwhile, receive no direct revenue from the protocol.
One tokenholder who opposed the proposal claimed the initiative would dilute investor stakes without delivering tangible benefits. The user highlighted that WLFI had already amassed a nine-figure treasury in Bitcoin (BTC), Ether (ETH), and Chainlink (LINK), yet holders saw no upside from these assets. “World Liberty Financial could easily liquidate their alt assets to support USD1 incentives instead of diluting investors,” they added.
Expansion Plans Amid Regulatory Moves
The governance vote coincides with WLFI’s broader expansion efforts. The company recently applied for a national trust banking charter in the U.S., aiming to consolidate USD1 issuance, custody, and redemption under a regulated entity. This would also enable fee-free conversions between dollars and USD1, targeting institutional clients.
Additionally, WLFI launched World Liberty Markets, a lending and borrowing platform powered by its USD1 stablecoin and governance token. While the growth strategy is clear, the voting controversy underscores tension between community representation and top-level influence.
Also Read: Cardano Founder vs. CLARITY Act: Why Hoskinson is Turning on Garlinghouse
As the debate continues, WLFI investors are closely watching how the project balances expansion with equitable governance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
