A proposal by World Liberty Financial to release 62 billion WLFI tokens is on the verge of passing, having garnered overwhelming support in the early stages of voting. The proposed plan involves key stakeholders burning 10% of their token holdings, approximately 4.5 billion WLFI, to initiate a five-year unlocking process for the remaining 40.7 billion tokens, following an initial two-year lockup period. Due to the lockup, no tokens will enter the market for at least two years, marking a significant shift in the valuation structure of WLFI by introducing a predictable supply schedule and providing a clearer exit strategy for holders.
With 99.5% of voters in favor, the proposal has near-unanimous backing. The voting results also shed light on the governance structure of WLFI, with participation levels mirroring those of previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with minimal resistance. Voting power is concentrated among a handful of large holders, with the largest wallet holding 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.
Furthermore, WLFI is currently 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.