A proposal by World Liberty Financial to unlock a vast 62 billion WLFI tokens has garnered overwhelming support, with the majority of votes surpassing the required quorum and indicating near-unanimous backing. The plan involves a 10% reduction in holdings for founders, team members, and partners, equivalent to 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. As a result, no tokens will enter the market for at least two years due to the cliff period. This development marks a significant shift in the valuation of WLFI, replacing open-ended lockups with a predictable supply schedule and providing a clearer exit strategy for holders who previously lacked one.
The proposal has received 99.5% approval, underscoring the concentrated nature of WLFI's governance structure. Voter participation is consistent with previous proposals, suggesting that a small group of major holders can drive significant tokenomic changes with minimal opposition.
Notably, 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 combined controlling around 40% of the total voting power, thereby exerting substantial influence over the outcome. Additionally, WLFI 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.