A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on the verge of passing, with overwhelming support in the early voting stages. The plan involves a 10% burn of holdings by founders, team members, and partners, amounting 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 lock-up.
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 received almost unanimous support, with 99.5% of voters in favor.
However, the voting process also highlights the concentration of voting power among a small group of large holders, with the largest wallet holding nearly 13% of the votes cast and the top four wallets controlling around 40% of the total voting power. This concentration of power raises concerns about the ability of a small group to drive major changes with limited opposition.
Additionally, World Liberty Financial 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.