A proposal by World Liberty Financial to release 62 billion WLFI tokens has garnered overwhelming support, with initial votes surpassing the required threshold and showing near-unanimous backing. The plan involves a 10% reduction of holdings by founders, team members, and partners, equivalent to approximately 4.5 billion WLFI, which would initiate the unlocking of the remaining 40.7 billion tokens over a five-year period after a two-year waiting period. As a result, no tokens will be available on the market for at least two years due to the waiting period.
This change marks a significant 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. The proposal has received 99.5% approval, highlighting the concentrated nature of WLFI's governance structure. Voting participation is consistent with previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with minimal opposition.
The largest wallet holds nearly 13% of the votes cast, while the top four wallets collectively control around 40% of the total voting power, giving them substantial influence over the outcome. Additionally, World Liberty Financial 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.