A proposal by World Liberty Financial to release 62 billion WLFI tokens is on the verge of approval, with initial voting results showing overwhelming support and exceeding the required quorum. The plan involves a 10% reduction of holdings by founders, team members, and partners, amounting to approximately 4.5 billion WLFI tokens, which would 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 released into the market for at least two years due to the cliff periods.
This development signifies a significant shift in the valuation structure of WLFI, replacing indefinite lock-ups 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 near-unanimous support. However, the voting process has also highlighted the concentration of governance power within WLFI.
The level of participation is consistent with previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with minimal opposition. Notably, voting power is heavily concentrated, 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 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.