A proposal by World Liberty Financial to unlock 62 billion WLFI tokens has garnered overwhelming support, with voting results indicating a near-unanimous consensus. The plan involves a token burn of 10%, equivalent to 4.5 billion WLFI, held by founders, team members, and partners, paving the way for the gradual release of the remaining 40.7 billion tokens over a five-year period, following an initial two-year lockup. This strategic move aims to introduce a predictable supply schedule, effectively replacing open-ended lockups and providing a clearer exit strategy for token holders.
The voting outcome, with 99.5% in favor, underscores the centralized nature of WLFI's governance, where a small group of major holders wield significant influence over tokenomic decisions. Notably, the largest wallet holds nearly 13% of the voting power, while the top four wallets collectively control around 40% of the total voting power. Meanwhile, World Liberty Financial is facing a lawsuit from Tron founder Justin Sun, who claims his tokens were frozen and his governance rights were revoked, allegations the company has denied.