A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on the verge of passing with overwhelming support, as initial votes have surpassed the required quorum and shown near-unanimous backing. The proposed plan involves a 10% burn of holdings by founders, team members, and partners, equivalent to approximately 4.5 billion WLFI, to initiate the unlocking of the remaining 40.7 billion tokens over a five-year period following a two-year waiting period. As a result, no tokens will be available on the market for at least two years due to the cliff period.
This development 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 garnered widespread 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 significant tokenomic changes with minimal opposition. The 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, WLFI is facing a lawsuit from Tron founder Justin Sun, who alleges that the project froze his tokens and revoked his governance rights, claims that the company has denied.