A proposal by World Liberty Financial to release 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 insiders, including founders, team members, and partners, surrendering 10% of their token holdings, or approximately 4.5 billion WLFI, to initiate a staggered release of the remaining 40.7 billion tokens over five years, following an initial two-year lockup period. Due to the lockup period, no tokens will be available on 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 gained near-unanimous support.
The voting results also shed light on the governance structure of WLFI, with participation levels consistent with previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with minimal opposition. The concentration of voting power among a handful of large holders is notable, 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, World Liberty Financial 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.