A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on track to pass with overwhelming support, having exceeded the required quorum and garnered near-unanimous backing. The plan involves a 10% burn of holdings by 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. This move introduces a two-year cliff, ensuring no tokens will enter the market for at least two years. The change marks a significant shift in the valuation structure of WLFI, replacing indefinite lockups with a predictable supply schedule and providing a clearer exit strategy for holders who previously lacked one.
With 99.5% of voters in favor, the proposal has received widespread approval. However, the voting process also highlights the concentrated nature of WLFI's governance, with participation rates consistent with previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with minimal opposition. Notably, voting power is heavily concentrated, 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, sufficient to substantially influence the outcome independently.
Additionally, WLFI is facing a lawsuit from Tron founder Justin Sun, who claims that the project froze his tokens and revoked his governance rights, allegations that the company has denied.