A proposal by World Liberty Financial to release 62 billion WLFI tokens is on track to pass with overwhelming support, having surpassed the required quorum and garnered near-unanimous backing in early voting. The proposed plan involves key stakeholders, including founders, team members, and partners, burning 10% of their token holdings - approximately 4.5 billion WLFI - to initiate a five-year unlocking schedule for the remaining 40.7 billion tokens, following a two-year lockup period. Due to the lockup period, no tokens will enter the market for at least two years, marking a significant shift in the valuation structure of WLFI by replacing indefinite lockups with a predictable supply schedule, thereby creating a clearer exit strategy for holders.
With 99.5% of voters in favor, the proposal has gained widespread approval. The voting results also shed light on WLFI's governance structure, with participation levels mirroring those of previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with minimal opposition.
Notably, 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, giving them substantial influence over the outcome. Additionally, WLFI is facing a lawsuit from Tron founder Justin Sun, who alleges that his tokens were frozen and his governance rights were revoked, claims that the company has denied.