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. The plan involves a 10% reduction in token holdings for founders, team members, and partners, amounting to approximately 4.5 billion WLFI, which would initiate a five-year unlocking schedule for the remaining 40.7 billion tokens after a two-year waiting period.
As a result, no tokens will enter the market for at least two years, introducing a predictable supply schedule and a clearer exit strategy for holders. The proposal has garnered 99.5% support, highlighting the concentrated nature of WLFI's governance, where a small group of large holders wield significant influence over tokenomic decisions.
Notably, the largest wallet holds nearly 13% of the voting power, while the top four wallets collectively control around 40% of the total voting power, allowing them to substantially impact the outcome. Meanwhile, World Liberty Financial is facing a lawsuit from Tron founder Justin Sun, who claims that his tokens were frozen and his governance rights were revoked, allegations that the company has denied.