USD1 Growth Proposal Triggers Claims of WLFI Value Extraction
World Liberty Financial's USD1 proposal has passed despite significant governance concerns, with nine wallets controlling nearly 59% of the voting power. The decision highlights centralized influence in WLFI's decentralized framework, as locked token holders were excluded from participation.
Revenue flows are increasingly bypassing WLFI holders, accelerating USD1 expansion while raising emissions and dilution fears. On-chain data reveals team-linked and partner-linked wallets dominated the vote, with the largest single wallet commanding over 18% of the voting share.
The outcome underscores growing tensions between protocol direction and token holder interests. As USD1 gains prominence, critics warn of eroding governance participation and value extraction from the broader WLFI ecosystem.
