A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on the verge of passing, having garnered overwhelming support in the early stages of voting, exceeding the required quorum with near-unanimous approval. The proposed plan involves founders, team members, and partners relinquishing 10% of their token holdings, approximately 4.5 billion WLFI, to initiate the unlocking of the remaining 40.7 billion tokens over a five-year period, subsequent to a two-year cliff. The tokens will not be available on the market for at least two years due to the cliff period. This development marks a significant shift in the valuation structure of WLFI, replacing indefinite lock-ups with a predictable future supply, thereby creating a clearer exit strategy for holders who previously lacked one.
The proposal has garnered support from 99.5% of voters, indicating widespread approval. The voting process also sheds light on the governance structure of WLFI. The level of participation is consistent with previous proposals, suggesting that a small group of large holders can drive significant tokenomic changes with minimal opposition.
Voting power is concentrated among a handful 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. Furthermore, WLFI is facing a lawsuit from Justin Sun, the founder of Tron, who alleges that his tokens were frozen and his governance rights were revoked, claims that the company has denied.