World Liberty Financial (WLFI) is once again drawing heat from its community after a governance vote approved a $120 million proposal to boost adoption of its USD1 stablecoin, with critics pointing to a voting process that was largely dominated by wallets linked to insiders.
According to pseudonymous researcher and analyst DeFi^2, the top nine wallets accounted for close to 59% of all votes cast in support of the proposal.
The single largest wallet alone contributed 18.786% of the total voting power.
Many of these addresses have been identified as either team-controlled or tied to strategic partners, effectively sidelining the broader tokenholder base from any meaningful influence.
“This is in contrast to the real voters lower in the screenshot, who have all been locked from accessing their WLFI tokens since TGE, and are unable to vote on an unlock until the team allows it,” DeFi^2 wrote on X.
WLFI developers proposed the measure last month, outlining a plan to use 5% of the protocol’s treasury to support new partnerships and incentive programs aimed at scaling USD1.
According to the proposal, growing stablecoin adoption would create “more opportunities for value capture across the WLFI ecosystem,” while increasing governance power for tokenholders over a larger network.
Proposal reignites long-standing concerns over incentives
The vote has brought renewed attention to a recurring issue within the WLFI ecosystem, specifically whether tokenholders benefit in any direct way from the project’s growth.
DeFi^2 questioned why governance was being used to advance USD1 incentives instead of resolving the long-standing lockup that prevents a large share of holders from participating.
“The real motivation becomes clear when you recall the fine print that WLFI holders are not entitled to ANY protocol revenue at all,” the researcher said, pointing to the project’s Gold Paper.
According to the revenue model, 75% of net income is allocated to entities tied to the Trump family, with the remaining 25% going to the Witkoff family. WLFI holders are left with no direct claim on protocol earnings.
One voter who opposed the measure said it was another move that diluted investors without offering any tangible benefit in return.
The user pointed out that World Liberty had already spent more than nine figures in investor capital to accumulate assets like Bitcoin, Ethereum, and Chainlink, yet those holdings have not translated into any upside for WLFI holders.
“World Liberty Financial could easily liquidate their alt assets to support their USD1 incentives instead of diluting investors even more,” they wrote.
The latest vote has only added to a growing list of grievances surrounding WLFI’s governance model and ethical structure.
Since its inception, the Trump-linked platform has been dogged by allegations ranging from selling tokens to addresses tied to sanctioned nations to claims of insider dealing and politically connected favours.
USD1 growth efforts continue despite friction
While criticism around governance mounts, WLFI has continued to advance its stablecoin-focused roadmap.
Last week, the team launched World Liberty Markets, an on-chain lending and borrowing platform built on Dolomite’s infrastructure, allowing users to supply or borrow assets like USD1, WLFI, ETH, and cbBTC.
Earlier this month, the project applied for a US banking charter to support USD1 growth.
The company has also been expanding its reach internationally.
On January 14, WLFI signed a memorandum of understanding with Pakistan’s finance ministry and crypto regulator, exploring ways to integrate USD1 into the country’s remittance and foreign exchange systems.
It also marked the first time a sovereign government formally partnered with the Trump-backed crypto platform.
An invite-only summit called the World Liberty Forum is also set to take place next month at Mar-a-Lago.
According to event materials, it will feature speakers from Goldman Sachs, Franklin Templeton, and FIFA, reinforcing WLFI’s ambitions to position itself at the crossroads of finance, politics, and global adoption.
But for many WLFI holders still locked out of governance and profits, the project’s growth narrative is ringing hollow.
As one critic put it, WLFI is beginning to look less like a decentralised protocol and more like a centralised business empire where real power remains in the hands of a few.
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