A proposal by World Liberty Financial to unlock 62 billion WLFI tokens has gained significant traction, with early voting results showing overwhelming support. The plan involves a 10% burn of founders', team members', and partners' holdings, amounting to approximately 4.5 billion WLFI, followed by a five-year unlocking schedule for the remaining 40.7 billion tokens after a two-year cliff period. This move is expected to introduce a predictable supply of WLFI and provide a clearer exit strategy for holders. The voting results, with 99.5% in favor, highlight the concentrated nature of WLFI's governance, where a small group of large holders wield significant influence over tokenomic decisions.
The largest wallet holds nearly 13% of the voting power, while the top four wallets combined control around 40% of the total voting power. Meanwhile, World Liberty Financial is facing a lawsuit from Tron founder Justin Sun, who claims his tokens were frozen and his governance rights were revoked, allegations that the company has denied.