A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on track to pass with overwhelming support, having already surpassed the required quorum and garnered near-unanimous backing from voters. The proposed plan involves founders, team members, 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 cliff period. Due to the cliff periods, no tokens will be released into the market for at least two years.
This development marks a significant structural shift in the valuation 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 supporting the proposal, it appears to have broad consensus. The vote also sheds light on the governance structure of WLFI, with participation levels consistent with previous proposals, indicating that a small group of large holders can drive significant tokenomic changes with minimal opposition. Voting power is concentrated among a handful of major 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, sufficient to substantially influence the outcome.
Additionally, WLFI is 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.