A proposal by World Liberty Financial to release 62 billion WLFI tokens is on the verge of approval, garnering overwhelming support in the early stages of voting, with a significant majority exceeding the required quorum. The proposed plan involves the burning of 10% of token holdings by founders, team members, and partners, amounting to approximately 4.5 billion WLFI, which would initiate the unlocking of the remaining 40.7 billion tokens over a period of five years, following an initial two-year lockup.
Due to the two-year cliff period, no tokens will be released into the market for at least two years, marking a significant shift in the valuation structure of WLFI by replacing indefinite lockups with a predictable supply schedule, thereby providing a clearer exit strategy for holders. With 99.5% of voters in favor, the proposal has garnered near-unanimous support, shedding light on the governance structure of WLFI.
Voting participation levels are 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 small group 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 wielding substantial influence over the outcome. Additionally, WLFI is 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.