WLFI faced community opposition due to its "team wallet" pushing to pass the vote on the USD1 growth proposal.
PANews reported on January 20 that, according to Cointelegraph, World Liberty Financial (WLFI) is facing controversy over a governance vote on a proposal to increase the value of its USD1 stablecoin. The community criticized that its locked-up holders were unable to participate in the vote, and that the voting results were dominated by a few affiliated wallets.
On-chain voting data shows that the top nine wallets controlled approximately 59% of the voting power, with the largest single wallet contributing 18.786%. Anonymous researcher DeFi^2 points out that these key votes mostly came from addresses associated with the team or strategic partners, while ordinary holders with a large amount of locked tokens were excluded from voting. Critics argue that the project team should prioritize resolving the unlocking issues for investors, rather than pushing proposals that could further dilute the rights of token holders. According to project documents, 75% of the protocol's net revenue is allocated to entities associated with the Trump family, 25% to entities associated with the Witkoff family, and WLFI holders do not directly share in the protocol's revenue.
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