A proposal to release 62 billion WLFI tokens, put forth by World Liberty Financial, is on track to pass with overwhelming support, having surpassed the required quorum and garnered near-unanimous approval in the early voting stages. The plan entails a 10% reduction in holdings for founders, team members, and partners, amounting to approximately 4.5 billion WLFI tokens, which will initiate the unlocking of the remaining 40.7 billion tokens over a five-year period following a two-year moratorium. As a result, no tokens will be available on 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 indefinite lock-ups with a predictable supply schedule and providing a clearer exit strategy for holders who previously lacked one.
With 99.5% of voters in favor, the proposal has garnered widespread support. However, the voting process also highlights the concentrated nature of WLFI's governance, with participation levels mirroring those of previous proposals and indicating that a small group of major holders can drive significant tokenomic changes with limited opposition. The voting power is predominantly held by a small group of large holders, 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.
Furthermore, WLFI is currently embroiled in a lawsuit with Tron founder Justin Sun, who alleges that the project froze his tokens and revoked his governance rights, claims that the company has denied.