A proposal by World Liberty Financial to release 62 billion WLFI tokens has garnered overwhelming support, with initial voting results surpassing the required threshold and showing near-unanimous backing. The proposal outlines that founders, team members, and partners will relinquish 10% of their token holdings, approximately 4.5 billion WLFI, to initiate the release of the remaining 40.7 billion tokens over a five-year period, commencing after a two-year lockup. Due to the lockup period, no tokens will enter the market for at least two years. This change 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 received overwhelming support. The voting results also shed light on WLFI's governance structure, revealing that participation levels are consistent with previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with minimal opposition.
Voting power is concentrated among a small group of 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, enabling them to substantially influence the outcome. Additionally, WLFI 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.