A proposal by World Liberty Financial to unlock 62 billion WLFI tokens has garnered significant support, with the majority of votes cast in favor of the plan. The proposed plan involves the burning of 10% of token holdings by founders, team members, and partners, amounting to approximately 4.5 billion WLFI tokens. The remaining 40.7 billion tokens will be unlocked over a five-year period following a two-year cliff.
As a result of the cliff period, no tokens will enter the market for at least two years, marking a significant shift in the valuation structure of WLFI. The new plan replaces open-ended lockups with a predictable supply schedule, providing a clearer exit strategy for token holders. With nearly 99.5% of voters supporting the proposal, the outcome is all but certain.
The vote has also shed light on the governance structure of WLFI, revealing that a small group of large token holders wield significant influence over major decisions. Voting participation levels are consistent with previous proposals, suggesting that a small number of major holders can drive significant tokenomic changes with minimal opposition. The concentration of voting power is evident, 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. Meanwhile, World Liberty Financial 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.