A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on track to be approved, with initial voting results showing overwhelming support and exceeding the required quorum. The proposed plan involves key stakeholders, including founders, team members, and partners, relinquishing 10% of their token holdings, approximately 4.5 billion WLFI, to initiate the unlocking of the remaining 40.7 billion tokens over a five-year period, following an initial two-year lockup.
The token unlock is structured such that no tokens will enter the market for at least two years, due to the cliff period. This development signifies a significant shift in the valuation structure of WLFI, replacing indefinite lockups with a predictable supply schedule, thus providing a clearer exit strategy for holders who previously lacked one. The proposal has garnered near-unanimous support, with 99.5% of voters backing the plan.
The voting outcome also sheds light on the governance framework of WLFI. Voter participation is consistent with previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with minimal resistance. Voting power is concentrated among a few 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, 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.