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. The proposed plan involves founders, team members, and partners surrendering 10% of their token holdings, approximately 4.5 billion WLFI, to initiate a five-year unlocking schedule for the remaining 40.7 billion tokens following a two-year lockup period.
Due to the lockup period, no tokens will enter the market for at least two years, marking a significant shift in how WLFI is valued by replacing indefinite lockups with a predictable supply schedule and providing a clearer exit strategy for holders. The proposal has garnered 99.5% support, indicating broad approval.
The voting results also shed light on the governance structure of WLFI, with participation rates similar to those of previous proposals, suggesting that a small group of major holders can drive significant tokenomic changes with minimal opposition. Voting power is concentrated among a few 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, giving them 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.