A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on track to pass with overwhelming support, having surpassed the required quorum and achieved near-unanimous approval in early voting. The proposed plan involves founders, team members, and partners relinquishing 10% of their token holdings, approximately 4.5 billion WLFI, to initiate the unlocking of the remaining 40.7 billion tokens over a five-year period, following a two-year waiting period.
Due to the waiting period, no tokens will be released to the market for at least two years, marking a significant shift in the valuation structure of WLFI by replacing indefinite lockups with a predictable supply schedule and providing a clearer exit strategy for holders. The proposal has garnered 99.5% support, indicating widespread approval.
The voting results also shed light on the governance structure of WLFI, with participation levels consistent with previous proposals, suggesting that a small group of major holders can drive significant tokenomic changes with minimal opposition. Voting power is heavily concentrated among a few large holders, with the largest wallet accounting for nearly 13% of the votes cast and the top four wallets collectively controlling around 40% of the total voting power, thereby exerting substantial influence over the outcome.
Furthermore, WLFI is facing a lawsuit from Tron founder Justin Sun, who alleges that the project froze his tokens and revoked his governance rights, claims that the company has denied.