A proposal by World Liberty Financial to unlock a substantial 62 billion WLFI tokens has garnered significant support, with voting results indicating a near-unanimous decision. The proposed plan involves a token burn of 10%, equivalent to approximately 4.5 billion WLFI, held by founders, team members, and partners. This burn would initiate a five-year unlocking schedule for the remaining 40.7 billion tokens, following a two-year cliff period.
As a result of the cliff periods, no tokens will be released into the market for at least two years. This strategic move 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 received overwhelming support, with 99.5% of voters in favor.
However, the voting process has also highlighted the governance structure of WLFI, with participation levels similar to those of previous proposals. This suggests that a small group of major holders can drive significant tokenomic changes with limited opposition.
The concentration of voting power among a small group of large holders is a notable concern. The largest wallet holds nearly 13% of the votes cast, while the top four wallets combined control approximately 40% of the total voting power, giving them substantial influence over the outcome. Additionally, World Liberty Financial 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.