A recent proposal by World Liberty Financial to unlock 62 billion WLFI tokens has garnered significant support, with early voting results showing near-unanimous approval. The plan involves burning 10% of founders', team members', and partners' holdings, approximately 4.5 billion WLFI, to initiate the unlocking of the remaining 40.7 billion tokens over a five-year period following a two-year lockup. This move is expected to bring about a structural change in the valuation of WLFI, replacing indefinite lockups with a predictable supply schedule and providing a clearer exit strategy for holders.
With 99.5% of voters in favor, the proposal highlights the concentrated nature of WLFI's governance, where a small group of large holders wield significant voting power. 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, allowing them to substantially influence the outcome. Meanwhile, WLFI is facing a lawsuit from Tron founder Justin Sun, who claims that his tokens were frozen and his governance rights were revoked, allegations that the company has denied.