The top nine wallets had about 60% of the voting power in WLFI’s USD1 governance vote. This made people wonder if insiders had too much power because locked holders couldn’t vote.
People are upset with World Liberty Financial (WLFI) after a governance vote accepted a USD1 growth proposal. This is because locked WLFI holders couldn’t vote, which upset the community.
According to pseudonymous crypto trader and researcher DeFi^2, on-chain voting data suggests that the biggest “FOR” votes came from the top wallets that were identified as being linked to the team or insiders’ strategic partner addresses.
Voting Power Concentrated Among a Small Group
The top nine wallets had about 59% of all voting power, which meant that a small group of big holders had a lot of say over the fate of the USD1 growth plan. According to the snapshot vote for WLFI governance, the biggest wallet alone gave 18.786% of the entire voting power.
DeFi^2 said on X, “This is different from the real voters lower in the screenshot, who have been locked out of their WLFI tokens since TGE and can’t vote on an unlock until the team lets them.”
Governance Priorities Questioned by the Community
DeFi^2 says that the project’s focus on the USD1 growth proposal makes them wonder why governance was utilised to expand the protocol instead of fixing problems that affect a lot of investors.
The real reason becomes clear when you remember that WLFI holders are not entitled to ANY protocol revenue at all,” the researcher wrote. They also noted that the project’s Gold Paper says that 75% of net income goes to businesses connected to the Trump family and 25% goes to businesses connected to the Witkoff family.
Investor Value and Treasury Allocation Concerns
One person who voted against the idea stated that it would make investors even less valuable without giving them anything in return. The user said that World Liberty Financial had used more than nine figures of investor funds to establish a treasury of assets, including Bitcoin (BTC $91,145), Ether (ETH $3,107), and Chainlink (LINK $12.54), yet WLFI holders don’t get any direct benefits from such holdings.
“World Liberty Financial could easily sell their alt assets to pay for their USD 1 incentives instead of making investors even less valuable,” the user stated.
World Liberty Financial sought a national trust banking charter in the US earlier this month. This would put the issuance, custody, and conversion of its USD1 stablecoin under one regulated company. The move would let the company mint and redeem USD1 without needing help from other companies, perform free conversions between dollars and USD1, and add more services for institutional users.
The company also started World Liberty Markets last week. It’s a new on-chain lending and borrowing platform that uses its USD1 stablecoin and WLFI governance token.