A proposal by World Liberty Financial to unlock 62 billion WLFI tokens has garnered overwhelming support, with voting results showing nearly unanimous backing. The plan involves a token burn of 10%, equivalent to 4.5 billion WLFI, held by founders, team members, and partners, which will initiate the unlocking of the remaining 40.7 billion tokens over five years, following a two-year lock-up period. This strategic move introduces predictability to the token's supply and provides a clearer exit strategy for holders.
The voting outcome, with 99.5% in favor, underscores the concentrated nature of WLFI's governance, where a small group of large holders wield significant influence over major decisions. Notably, the largest wallet holds nearly 13% of the votes, and the top four wallets collectively control around 40% of the total voting power, raising concerns over the distribution of power. Meanwhile, World Liberty Financial is embroiled in a lawsuit with Tron founder Justin Sun, who alleges that his tokens were frozen and his governance rights revoked, claims that the company has disputed.