A proposal by World Liberty Financial to release 62 billion WLFI tokens has gained substantial traction, with an overwhelming majority of voters supporting the plan. The proposal outlines a vesting schedule for 40.7 billion tokens held by insiders, which will be unlocked over a five-year period following a two-year waiting period. As part of the plan, founders, team members, and partners will initially burn 10% of their token holdings, equivalent to approximately 4.5 billion WLFI.
This strategy aims to introduce a predictable token supply, replacing indefinite lock-ups and providing a clearer exit strategy for token holders. The voting results reveal a significant level of support, with 99.5% of participants voting in favor. However, the voting process also highlights the centralized nature of WLFI's governance, where a small group of major token holders wield significant influence over the outcome. The largest wallet alone accounts for nearly 13% of the votes cast, while the top four wallets collectively control around 40% of the total voting power.
Additionally, World Liberty Financial is currently facing a lawsuit from Tron founder Justin Sun, who alleges that his tokens were frozen and his governance rights were revoked, claims that the company has denied.