A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on the verge of passing, with initial voting results showing overwhelming support and exceeding the required quorum. The proposed plan involves founders, team members, and partners surrendering 10% of their token holdings, 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 lockup. As a result, no tokens will be released into the market for at least two years due to the cliff period.
This development 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 near-unanimous support, with 99.5% of voters backing the plan. The voting results also shed 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. 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.
Furthermore, WLFI is currently 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.