A proposal by World Liberty Financial to release 62 billion WLFI tokens is on the verge of passing with overwhelming support, having already surpassed the required quorum and garnered near-unanimous approval. The proposed plan involves the burning of 10% of the founders', team members', and partners' token holdings, equivalent to approximately 4.5 billion WLFI, which would initiate the unlocking of the remaining 40.7 billion tokens over a five-year period, following a two-year waiting period. Due to the cliff periods, no tokens will be released into 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 garnered widespread support.
The voting results also shed light on the governance structure of WLFI. Similar to previous proposals, the participation levels suggest that a small group of large token holders can drive significant tokenomic changes with relatively little 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, thereby exerting substantial influence over 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.