A proposal by World Liberty Financial to unlock 62 billion WLFI tokens has gained significant traction, with voting results indicating near-unanimous support. The plan involves a 10% burn of holdings by founders, team members, and partners, amounting to approximately 4.5 billion WLFI tokens, which would initiate the unlocking of the remaining 40.7 billion tokens over a five-year period following a two-year waiting period. As a result, no tokens will be released into the market for at least two years due to the cliff period.
This development marks a significant shift in the valuation structure of WLFI, replacing open-ended lockups with a predictable future supply and providing a clearer exit strategy for holders who previously lacked one. With 99.5% of voters in favor, the move has garnered substantial backing. However, the vote also underscores the concentrated nature of WLFI's governance, with participation levels mirroring those of previous proposals, suggesting that a small group of major holders can drive significant tokenomic changes with limited 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 approximately 40% of the total voting power, thereby holding substantial influence over the outcome. Additionally, World Liberty Financial is facing a lawsuit from Tron founder Justin Sun, who alleges that the project froze his tokens and revoked his governance rights, claims that the company has denied.