A proposal by World Liberty Financial to unlock 62 billion WLFI tokens has gained significant traction, with voting results indicating almost unanimous support. The proposed plan involves key stakeholders burning 10% of their token holdings, equivalent to approximately 4.5 billion WLFI, to initiate a five-year unlocking schedule for the remaining 40.7 billion tokens following a two-year lockup period.
As a result of the cliff periods, no tokens will be released into the market for at least two years. This strategic move marks a significant shift in the valuation structure of WLFI, replacing indefinite lockups with a predictable supply schedule and providing a clearer exit strategy for holders who previously lacked one. With 99.5% of voters in favor, the proposal has received overwhelming support.
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 holders can drive significant tokenomic changes with relatively little opposition.
Notably, voting power is heavily concentrated among a few 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, World Liberty Financial is currently 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.