World Liberty Financial Faces Allegations Over Governance Vote
- A governance vote at World Liberty Financial (WLFI), a DeFi project, is under scrutiny for alleged “slow” value extraction.
- Prominent trader DeFiSquared claims affiliated wallets pushed through a proposal while many public holders were unable to vote.
- The “USD1 growth proposal” allegedly benefits team wallets and strategic partners over public holders, who have been locked from accessing their WLFI tokens since TGE.
- 75% of protocol revenue reportedly goes to the Trump family, with the remaining going to the Witkoff family, as per the project’s Gold Paper.
- Post-vote, there were significant on-chain transfers, including one of 500 million WLFI tokens to Jump Trading.
The governance vote at World Liberty Financial has raised concerns over potential manipulation and value extraction by the team and its partners, leaving public holders at a disadvantage due to restricted access to their tokens. The allocation of protocol revenue primarily benefits key families associated with the project.
With WLFI trading at $0 .1608 , questions about its intrinsic value persist amid allegations of manipulated voting processes and revenue distribution favoring insiders . (Source)
