A proposal by World Liberty Financial to release 62 billion WLFI tokens is on the verge of approval, with initial voting results showing overwhelming support. The proposed plan involves insiders, including founders, team members, and partners, relinquishing 10% of their token holdings, equivalent to approximately 4.5 billion WLFI. This initial burn would initiate a five-year unlocking schedule for the remaining 40.7 billion tokens, following a two-year lockup period. As a result of the cliff period, no tokens will be released into the market for at least two years.
This development marks a significant shift in the valuation structure of WLFI, replacing indefinite lockups with a predictable supply schedule and providing a clearer exit strategy for holders. The proposal has garnered near-unanimous support, with 99.5% of voters in favor.
The voting results also shed light on the governance structure of WLFI, with participation levels consistent with previous proposals. This suggests 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 combined controlling approximately 40% of the total voting power. Additionally, WLFI is currently facing a lawsuit from Justin Sun, the founder of Tron, who alleges that his tokens were frozen and his governance rights were revoked, claims that the company has denied.