A proposal by World Liberty Financial to unlock a substantial 62 billion WLFI tokens is on track to pass with ease, garnering almost unanimous backing from early voters and surpassing the required quorum. 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, preceded by a two-year lockup.
As a result, no tokens will enter the market for at least two years due to the cliff periods. This development signifies a significant structural shift in the valuation of WLFI, replacing indefinite lockups with a predictable future supply and providing a clearer exit strategy for holders who previously lacked one. The proposal has garnered near-unanimous support, with an impressive 99.5% of voters casting their ballots in favor.
The voting process also sheds light on the governance structure of WLFI, revealing that participation levels are consistent with previous proposals, suggesting that a small but influential group of large holders can drive major tokenomic changes with minimal opposition. Notably, voting power is heavily concentrated among a handful 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 wielding significant influence over the outcome.
Furthermore, WLFI is currently embroiled in a lawsuit with Tron founder Justin Sun, who alleges that the project froze his tokens and revoked his governance rights, claims that the company has vehemently denied.