A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on track to pass with overwhelming support, as initial voting results surpass the required quorum with near-unanimous backing. The proposed plan involves a 10% reduction in holdings for founders, team members, and partners, equivalent to approximately 4.5 billion WLFI tokens, which would initiate the unlocking of the remaining 40.7 billion tokens over a five-year period following a two-year lockup. Due to the lockup period, no tokens will be released into the market for at least two years.
This adjustment marks a significant shift in the valuation structure of WLFI, replacing indefinite lockups with a predictable supply schedule and providing a clearer exit strategy for holders who previously lacked one. With 99.5% of voters in favor, the proposal has garnered substantial support. The voting results also shed light on the governance structure of WLFI.
Voter participation is consistent with previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with minimal opposition. Voting power is predominantly concentrated among a few 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.
Additionally, WLFI is facing a lawsuit from Tron founder Justin Sun, who alleges that the project froze his tokens and revoked his governance rights, claims that the company has denied.