A proposal by World Liberty Financial to release 62 billion WLFI tokens is on the verge of passing, with overwhelming support from early voters. The plan includes a 10% token burn by founders, team members, and partners, amounting to approximately 4.5 billion WLFI, which would initiate a five-year unlocking schedule for the remaining 40.7 billion tokens after a two-year lockup period.
This change aims to introduce predictability to the token's valuation and provide a clearer exit strategy for holders. The voting results show near-unanimous backing, with 99.5% in favor.
However, the governance structure of WLFI has raised concerns, as a small group of large holders wield significant voting power, with the largest wallet holding nearly 13% of the votes and the top four wallets controlling around 40% of the total voting power. Additionally, World Liberty Financial is facing a lawsuit from Tron founder Justin Sun, who claims his tokens were frozen and his governance rights were revoked, allegations that the company has denied.