A proposal by World Liberty Financial to release 62 billion WLFI tokens is on the verge of passing with overwhelming support, having already surpassed the required quorum and garnered near-unanimous approval in early voting. The proposed plan involves key stakeholders, including founders, team members, and partners, reducing their holdings by 10%, equivalent to approximately 4.5 billion WLFI tokens. This initial reduction would initiate the phased release of the remaining 40.7 billion tokens over a five-year period, following an initial two-year lockup. Due to the lockup period, no tokens will enter the market for at least two years.
This strategic move signifies a fundamental shift in the valuation structure of WLFI, transitioning from indefinite lockups to a predictable supply schedule. It also provides a clearer exit strategy for holders who previously lacked one. The proposal has garnered support from 99.5% of voters, indicating broad consensus.
The voting process also sheds light on the governance framework of WLFI, revealing that participation levels are consistent with those of previous proposals. This suggests that a small but significant group of major stakeholders can drive substantial tokenomic changes with relatively little opposition.
Voting power within WLFI is concentrated among a small group of major stakeholders, with the largest wallet alone accounting for nearly 13% of the votes cast, and the top four wallets collectively controlling around 40% of the total voting power. This level of control is sufficient for these stakeholders to significantly influence the outcome independently. Additionally, WLFI is currently facing a lawsuit from Justin Sun, the founder of Tron, who alleges that his tokens were frozen and his governance rights were revoked by the project, claims that the company has denied.