A proposal by World Liberty Financial to unlock a substantial 62 billion WLFI tokens is on the verge of passing, with initial voting results showing overwhelming support and exceeding the required quorum. The plan involves a token burn of approximately 4.5 billion WLFI, or 10% of holdings, by founders, team members, and partners, which would initiate the unlocking of the remaining 40.7 billion tokens over a five-year period following a two-year lockup. This strategy ensures that no tokens will enter the market for at least two years, introducing a predictable supply schedule and a clearer exit strategy for holders. The voting results, with 99.5% in favor, underscore the concentrated nature of WLFI's governance, where a small group of large holders wield significant influence over tokenomic decisions.
Notably, the largest wallet holds nearly 13% of the voting power, and the top four wallets combined control around 40% of the total voting power, sufficient to sway outcomes independently. Meanwhile, World Liberty Financial is embroiled in a lawsuit with Tron founder Justin Sun, who alleges that his tokens were frozen and his governance rights revoked, claims that the company has disputed.