World Liberty Financial's governance token, WLFI, fell to a new low on Friday as the project announced plans to propose unlocking tokens for early holders. The token traded near $0.0800, marking a 15% decline in 24 hours, with its market capitalization dropping by $427 million to $2.54 billion. This development comes amid scrutiny over $150 million in stablecoin loans linked to the decentralized finance protocol Dolomite. World Liberty defended its borrowing activities, dismissing concerns about potential liquidation risks. The project stated it would add more collateral if market conditions worsened and emphasized that its activities benefit stablecoin suppliers on Dolomite by offering high yields. However, critics remain skeptical, highlighting the illiquidity of WLFI and potential slippage issues. Additionally, blockchain analysis firm Arkham Intelligence revealed that World Liberty posted approximately $400 million worth of WLFI as collateral on Dolomite, representing 98% of the token's supply on the platform. The concentration of tokens has raised further concerns about risk. World Liberty is drafting a governance proposal to allow WLFI holders to vote on unlocking tokens, which could significantly alter the token's structure.