A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on track to pass with overwhelming support, having surpassed the required quorum and garnered nearly unanimous backing. The plan involves a 10% burn of holdings by founders, team members, and partners, amounting to approximately 4.5 billion WLFI tokens, to initiate the unlocking of the remaining 40.7 billion tokens over a five-year period following a two-year lockup.
As a result, no tokens will be released into the market for at least two years, marking a significant shift in the valuation structure of WLFI by replacing open-ended lockups with a predictable supply schedule and providing a clearer exit strategy for holders. With 99.5% of voters in favor, the move has garnered substantial support. However, the voting process has also highlighted the concentrated nature of WLFI's governance, with participation levels consistent with previous proposals, indicating that a small group of large holders can drive major tokenomic changes with limited opposition.
Notably, the largest wallet holds nearly 13% of the votes cast, and the top four wallets collectively control around 40% of the total voting power, sufficient to significantly influence the outcome. Additionally, WLFI is currently facing a lawsuit from Tron founder Justin Sun, who claims that the project froze his tokens and revoked his governance rights, allegations that the company has denied.