A proposal by World Liberty Financial to unlock a massive 62 billion WLFI tokens is on the verge of passing, with overwhelming support from early voters. The plan involves a two-year lockdown period, after which 40.7 billion tokens will be gradually unlocked over five years.
As part of this plan, insiders will initially burn 10% of their holdings, equivalent to 4.5 billion WLFI tokens. This strategic move aims to introduce a predictable supply schedule, thereby providing a clearer exit strategy for token holders. With 99.5% of voters in favor, the proposal has garnered near-unanimous support.
However, the voting process has also shed light on the concentrated nature of WLFI's governance, with a small group of major holders wielding significant influence. The largest wallet alone accounts for nearly 13% of the votes cast, while the top four wallets collectively control around 40% of the total voting power. Additionally, World Liberty Financial is currently embroiled in a lawsuit with Tron founder Justin Sun, who claims that his tokens were frozen and his governance rights were revoked, allegations that the company has denied.