A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on track to pass with ease, having garnered overwhelming support in the early stages of voting, surpassing the required quorum with near-unanimous consensus. The proposed plan involves key stakeholders, including founders, team members, and partners, relinquishing 10% of their token holdings, approximately 4.5 billion WLFI, to initiate the unlocking of the remaining 40.7 billion tokens over a five-year period, following an initial two-year lockup. Due to the lockup period, no tokens will be released into the market for at least two years, marking a significant shift in the valuation structure of WLFI, as it transitions from indefinite lockups to a predictable supply schedule, thereby providing a clearer exit strategy for holders who previously lacked one.
With 99.5% of voters supporting the proposal, it highlights the governance structure of WLFI, where participation levels are consistent with previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with minimal opposition. Notably, voting power is concentrated among a handful of 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 holding substantial influence over the outcome. 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.