A proposal by World Liberty Financial to unlock 62 billion WLFI tokens has garnered significant support, with early voting results showing near-unanimous approval. The plan involves a 10% burn of holdings by founders, team members, and partners, equivalent to approximately 4.5 billion WLFI, which would initiate the unlocking of the remaining 40.7 billion tokens over a five-year period following a two-year cliff. As a result, no tokens will be released into the market for at least two years, introducing a predictable supply schedule and a clearer exit strategy for holders.
The voting results, with 99.5% in favor, highlight the concentrated voting power among a small group of major holders, with the largest wallet accounting for nearly 13% of the votes cast and the top four wallets controlling around 40% of the total voting power. Meanwhile, World Liberty Financial is facing a lawsuit from Tron founder Justin Sun, who claims that his tokens were frozen and his governance rights were revoked, allegations that the company has denied.