A proposal by World Liberty Financial to release 62 billion WLFI tokens is on the verge of passing with overwhelming support in the early voting stages, surpassing the required quorum with near-unanimous approval. The plan involves founders, team members, and partners reducing their holdings by 10%, equivalent to approximately 4.5 billion WLFI, to initiate the release 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 periods.
This change marks a significant shift in how WLFI is valued, replacing indefinite lockups with a predictable supply schedule, thereby creating a clearer exit strategy for holders who previously lacked one. With 99.5% of voters in favor, the move has garnered near-unanimous support.
However, the voting process also highlights the governance structure of WLFI, where participation levels are consistent with previous proposals, indicating that a small group of large holders can drive significant tokenomic changes with limited opposition. Notably, voting power is heavily concentrated among a handful of large holders, 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 the project froze his tokens and revoked his governance rights, claims that the company has denied.