- World Liberty Financial reserves full veto authority over any proposal, even those passed by token holders, citing legal or security risks.
- Governance will shift to a multisig wallet controlled by the team during any defined major crisis or security threat.
- WLFI token unlock begins September 1 at 8:00 AM ET, marking the first liquidity event for early participants.
World Liberty Financial, the crypto venture linked to the Trump family, has unveiled a governance framework that places full authority in the hands of its core team. The company outlined its new rules ahead of the WLFI token unlock, giving the team discretion to override any proposal passed by token holders.
The framework states that WLFL can reject any community-approved proposal if it believes the measure poses a legal, contractual, or security threat. The company emphasized that this decision lies entirely at the core team’s discretion and is not subject to community challenge or reversal. This approach shifts the balance of power sharply away from token holders.
Crisis Governance Transfers to Multisig Wallet
In a defined “major adverse event” or significant security issue, governance will be fully transitioned to a centralized multi-signature wallet. The company would then retain full control until the issue is resolved. This “kill switch” removes all decentralized governance functions temporarily, allowing the team to act without requiring community input during high-risk periods.
The inclusion of a central backstop within a supposedly decentralized protocol signals a security-first governance approach. However, this structure has raised concerns among observers about the effective power held by the core team, particularly as the project positions itself in the broader decentralized finance landscape.
WLFI Token Unlock Scheduled for September 1
The governance update comes just ahead of the WLFI token unlock event set for September 1 at 8:00 AM Eastern Time. A dedicated portal has been activated to support the unlocking process. This event marks the protocol’s transition to a liquid token environment, giving early investors access to their holdings for the first time.
The governance blueprint introduced by World Liberty Financial outlines a clear strategy of centralized oversight, particularly in crisis scenarios. With the token unlock nearing, the project’s approach to control and decision-making will remain under scrutiny as it enters the next phase of development.
