A proposal by World Liberty Financial to unlock 62 billion WLFI tokens has gained significant traction, with early voting results showing overwhelming support and surpassing the required quorum. The proposed plan involves a 10% burn of holdings by founders, team members, and partners, amounting 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 cliff. 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.
The voting results reveal a high level of consensus, with 99.5% of voters supporting the proposal. However, the concentration of voting power among a small group of large holders has raised concerns, with the largest wallet holding nearly 13% of the votes cast and the top four wallets collectively controlling around 40% of the total voting power. Additionally, World Liberty Financial is facing a lawsuit from Tron founder Justin Sun, who alleges that his tokens were frozen and his governance rights were revoked, claims that the company has denied.