World Liberty Financial [WLFI] has been at the center of scrutiny since Justin Sun filed a lawsuit against them for freezing his wallet. Sun is among the largest early investors of WLFI.
Such activities, in addition to the team’s consistent selling, resulted in the token dropping to an all-time low (ATL) on the charts.
However, the passing of a recent proposal sparked an instant price reversal this week. Hence, the question – Will the altcoin sustain its newly-found uptrend?
What does the proposal entail?
According to World Liberty Financial, its biggest governance proposal in history passed with 99.9% of the votes being YES.
To be specific, 11,537 wallets participated to restructure and unlock over 62 billion WLFI tokens. The votes reached 11.2 billion, surpassing the required quorum of 1 billion by elevenfold.
The proposal included moving 17 billion WLFI tokens from early investors into long-term vesting. Furthermore, more than 45 billion WLFI allocated to the team and founders would be restructured.
Put simply, the proposal addressed supply tokenomics. About 10% of tokens allocated to insiders would be burned permanently – A step to begin reducing circulating supply. This would create scarcity, which can drive price if demand is present.
The remaining supply would be vested for years with a cliff unlock coming after 2 years. Consequently, gradual unlocks would follow.
WLFI price reverses from its ATL
The passage of the governance proposal was bullish for WLFI’s price action, which instantly reversed from its ATL of $0.0512. The altcoin has been trading in the red zone since the crypto entered a bear market in Q4 2025.
At the time of writing, the Choppiness Index had a reading of 42, indicating that the altcoin was slowly losing its momentum. On the contrary, the Chaikin Money Flow (CMF) seemed to be rising – Evidence that traders may be moving capital into the altcoin.
Sustaining this uptrend would require the altcoin breaking past the resistance levels at $0.0744 and $0.0824. That would set a precedent for a rally towards the range consolidation between $0.09 and $0.10.
Conversely, these resistance levels may hinder this price appreciation.
Why is all not well?
While everything seemed positive after the governance proposal passed, the team’s wallet is continuing to distribute WLFI tokens across centralized exchanges (CEXs).
More than $50 million in WLFI has been sold since the massive sale of $100 million worth of WLFI six months ago. On top of that, the team was loaned $40 million in stablecoins from a collateral of $200 million WLFI.
These activities elicited “falling apart” claims, even though the team denied them. Hence, the aforementioned proposal does not guarantee that the uptrend will be sustained. Especially since underlying issues still remain.
Final Summary
- WLFI’s biggest governance proposal passed with 99.9% voting YES.
- WLFI’s price reversed instantly from its ATL, but sustaining the uptrend will be difficult.