A proposal by World Liberty Financial to release 62 billion WLFI tokens is on track to pass with overwhelming support, having already surpassed the required quorum and garnered nearly unanimous backing. The plan involves a 10% reduction in holdings for founders, team members, and partners, equivalent to approximately 4.5 billion WLFI tokens, which would initiate the staged release of the remaining 40.7 billion tokens over five years, following a two-year lockup period. As a result, no tokens will enter the market for at least two years, introducing a predictable supply schedule and a clearer exit strategy for holders.
This development has received 99.5% approval from voters, underscoring the concentrated nature of WLFI's governance, where a small group of major holders wield significant influence over tokenomic decisions. Notably, the largest wallet holds nearly 13% of the votes, and the top four wallets collectively control around 40% of the total voting power, enabling them to substantially impact outcomes. Meanwhile, World Liberty Financial is facing a lawsuit from Justin Sun, the founder of Tron, who claims that his tokens were frozen and his governance rights were revoked, allegations that the company has denied.