A proposal by World Liberty Financial to release 62 billion WLFI tokens is on track to succeed, garnering overwhelming support from voters who have surpassed the required quorum. The plan involves key stakeholders, including founders and partners, relinquishing 10% of their token holdings, approximately 4.5 billion WLFI, to initiate a five-year unlocking schedule for the remaining 40.7 billion tokens following a two-year moratorium. Due to the cliff period, no tokens will enter the market for at least two years.
This strategic shift transforms the valuation structure of WLFI by introducing a predictable supply schedule, thus providing a clearer exit strategy for holders who previously lacked one. The proposal has garnered nearly unanimous support, with 99.5% of voters in favor. The voting results also shed light on the governance structure of WLFI, revealing that participation levels are consistent with previous proposals.
This suggests that a small group of major stakeholders can drive significant tokenomic changes with minimal opposition. Voting power is concentrated among a handful of large stakeholders, with the largest wallet holding nearly 13% of the votes cast and the top four wallets collectively controlling around 40% of the total voting power, thereby significantly influencing the outcome.
Furthermore, 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.