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 plan involves a 10% reduction in holdings for founders, team members, and partners, equivalent to approximately 4.5 billion WLFI tokens, which would initiate the release of the remaining 40.7 billion tokens over a five-year period following a two-year holding period. Due to the holding period, no tokens will enter the market for at least two years, marking a significant shift in the valuation structure of WLFI by replacing indefinite lockups with a predictable supply schedule and providing a clearer exit strategy for holders. With 99.5% of voters in favor, the proposal has garnered widespread support.
The voting results also shed light on the governance structure of WLFI, with participation levels consistent with previous proposals, indicating that a small group of major stakeholders can drive significant tokenomic changes with minimal opposition. Voting power is substantially concentrated among a few large stakeholders, 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 considerable influence over the outcome.
Additionally, WLFI is facing a lawsuit from Tron founder Justin Sun, who claims that his tokens were frozen and his governance rights were revoked, allegations that the company has denied.