A proposal by World Liberty Financial to unlock 62 billion WLFI tokens has garnered significant support, with early voting results showing a near-unanimous approval. The proposed plan involves burning 10% of token holdings by founders, team members, and partners, equivalent to approximately 4.5 billion WLFI, to initiate a five-year unlocking schedule for the remaining 40.7 billion tokens following a two-year lock-up period.
Due to the cliff period, no tokens will enter the market for at least two years. This development marks a significant change in the valuation structure of WLFI, replacing indefinite lock-ups with a predictable supply schedule and providing a clearer exit strategy for holders who previously lacked one. The proposal has received overwhelming support, with 99.5% of voters in favor. The voting results also shed light on the governance structure of WLFI, highlighting that participation levels are consistent with previous proposals.
This suggests that a small group of major holders can drive significant tokenomic changes with minimal opposition. Voting power is concentrated among a handful of 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.
Additionally, World Liberty Financial is facing a lawsuit from Justin Sun, the founder of Tron, who alleges that his tokens were frozen and his governance rights were revoked, claims that the company has denied.