A proposal put forth by World Liberty Financial to unlock a vast 62 billion WLFI tokens has garnered overwhelming support, with initial voting results surpassing the required quorum and indicating near-unanimous backing. The proposed plan involves a token burn of 10%, equivalent to approximately 4.5 billion WLFI, held by the company's founders, team members, and partners. This burn would initiate the unlocking of the remaining 40.7 billion tokens over a five-year period, following a two-year lockup. No tokens will be released into the market for at least two years due to the cliff period.
This development signifies 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 secured an overwhelmingly favorable response, with 99.5% of voters expressing support. The voting results also shed light on the governance framework of WLFI.
Voter participation levels are consistent with those observed in previous proposals, suggesting that a small cohort of major holders can drive significant tokenomic changes with minimal opposition. Voting power is predominantly concentrated among a handful of large stakeholders. The largest wallet alone accounts for nearly 13% of the votes cast, while the top four wallets collectively control approximately 40% of the total voting power, thereby exerting substantial influence over the outcome.
World Liberty Financial is also embroiled in a lawsuit filed by Tron founder Justin Sun, who alleges that his tokens were frozen and his governance rights revoked, claims that the company has vehemently denied.