A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on track to pass with overwhelming support, having surpassed the required quorum and garnered near-unanimous approval in early voting. The plan involves founders, team members, and partners reducing their holdings by 10%, equivalent to approximately 4.5 billion WLFI, to initiate the unlocking of the remaining 40.7 billion tokens over a five-year period following a two-year waiting period.
As a result, no tokens will be released into the market for at least two years due to the cliff period. This change 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 who previously lacked one. With 99.5% of voters in favor, the proposal has gained almost unanimous support.
However, the voting process has also highlighted the concentration of governance power within WLFI. The level of participation is consistent with previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with minimal opposition.
Notably, voting power is heavily concentrated, 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, WLFI is facing a lawsuit from Tron founder Justin Sun, who alleges that his tokens were frozen and his governance rights were revoked, claims that the company has denied.