A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on track to pass with overwhelming support, having already surpassed the required quorum and garnered near-unanimous backing. The proposed plan involves the burning of 10% of founders', team members', and partners' token holdings, equivalent to approximately 4.5 billion WLFI, which would initiate the unlocking of the remaining 40.7 billion tokens over a five-year period following a two-year cliff. Due to the cliff period, no tokens will be released into the market for at least two years. This development represents a significant structural shift in the valuation 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 overwhelming support, with 99.5% of voters casting their ballots in favor. The voting process has also shed light on the governance structure of WLFI. Voter turnout is consistent with previous proposals, suggesting that a small group of major holders can drive significant tokenomic changes with minimal opposition. Voting power is concentrated among a small group of large holders, with the largest wallet 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.
Additionally, WLFI is facing a lawsuit from Tron founder Justin Sun, who claims that the project froze his tokens and revoked his governance rights, allegations that the company has denied.