A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on track to pass with overwhelming support, having surpassed the required quorum and garnered nearly unanimous approval in the early voting stages. The 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 waiting period. As a result, no tokens will enter the market for at least two years, due to the cliff period.
This development 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 supporting the proposal, it appears to have broad-based backing.
However, the voting process also highlights the concentrated nature of WLFI's governance, with participation levels consistent with previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with minimal opposition. The largest wallet holds nearly 13% of the votes cast, while the top four wallets collectively control around 40% of the total voting power, giving them substantial influence over the outcome. Additionally, WLFI is facing a lawsuit from Justin Sun, the founder of Tron, who claims that his tokens were frozen and his governance rights were revoked, allegations that the company has denied.