A proposal by World Liberty Financial to release 62 billion WLFI tokens is on track to pass with overwhelming support, having already surpassed the required quorum with near-unanimous backing from early voters. The proposed plan involves the burning of 10% 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 waiting period. Due to the cliff periods, no tokens will be released into the market for at least two years. 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 garnered near-unanimous support, with 99.5% of voters in favor. The voting outcome also sheds light on the governance structure of WLFI. Voting participation levels are consistent with those of previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with minimal opposition. Voting power is heavily concentrated among a few large stakeholders, with the largest wallet alone 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.
Furthermore, WLFI is currently 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.