A proposal by World Liberty Financial to unlock a substantial 62 billion WLFI tokens is on track to be approved, garnering significant support in the early voting stages. The proposed plan involves key stakeholders, including founders and partners, relinquishing 10% of their token holdings, approximately 4.5 billion WLFI, to initiate a staggered release of the remaining 40.7 billion tokens over five years, commencing after a two-year lock-in period.
Due to the lock-in period, no tokens will be available on the market for at least two years. This strategic shift transforms the valuation structure of WLFI, replacing indefinite lock-ups with a predictable supply schedule, thereby providing a clearer exit strategy for holders. The proposal has garnered near-unanimous backing, with 99.5% of voters expressing support. The voting process also sheds light on the governance framework of WLFI.
Voter participation is consistent with previous proposals, indicating that a small but influential group of major stakeholders can drive significant changes to the token's economy with minimal opposition. Voting power is predominantly concentrated among a handful of large stakeholders, 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, thus holding substantial sway over the outcome.
Furthermore, WLFI is currently embroiled in a lawsuit filed by Tron founder Justin Sun, who alleges that his tokens were frozen and his governance rights were revoked, claims that the company has denied.