A proposal by World Liberty Financial to unlock 62 billion WLFI tokens has garnered overwhelming support, with votes surpassing the required threshold and showing near-unanimous backing. The proposed plan involves a 10% burn of holdings by founders, team members, and partners, equivalent to approximately 4.5 billion WLFI tokens, to initiate the unlocking of the remaining 40.7 billion tokens over a five-year period following a two-year lockup. The tokens will not be available on the market for at least two years due to the cliff period. This change 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.
The proposal has received almost unanimous support, with 99.5% of voters in favor. The voting results also highlight the governance structure of WLFI. Participation levels are consistent with previous proposals, indicating that a small group of large holders can drive significant tokenomic changes with minimal opposition. Voting power is heavily concentrated among a few large holders, with the largest wallet accounting for nearly 13% of the votes cast and the top four wallets controlling around 40% of the total voting power, giving them substantial influence over the outcome.
Additionally, 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.