A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on the verge of passing, having garnered overwhelming support in the early voting stages, surpassing the required quorum with near-unanimous backing. The proposed plan involves founders, team members, and partners relinquishing 10% of their token holdings, approximately 4.5 billion WLFI, to initiate the unlocking of the remaining 40.7 billion tokens over a five-year period, subsequent to a two-year lock-up. As a result of the cliff periods, no tokens will be released into the market for at least two years. This strategic shift transforms the valuation structure of WLFI, replacing indefinite lock-ups with a predictable supply schedule, thereby providing a clearer exit strategy for holders who previously lacked one.
With 99.5% of voters supporting the move, the decision has garnered almost unanimous approval. The voting outcomes also shed light on the governance framework of WLFI, where participation levels are consistent with previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with minimal opposition.
The concentration of voting power among a small group of large holders is notable, 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, sufficient to substantially influence the outcome independently. Additionally, WLFI is currently 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.