A proposal by World Liberty Financial to release 62 billion WLFI tokens is on track to be approved, having garnered widespread support in the early voting stages. The proposed plan involves key stakeholders, including founders, team members, and partners, relinquishing 10% of their token holdings, approximately 4.5 billion WLFI, to facilitate the gradual unlocking of the remaining 40.7 billion tokens over a five-year period, following an initial two-year lockup. Due to the lockup period, no tokens will be released into the market for at least two years.
This development marks a significant shift in the valuation structure of WLFI, replacing indefinite lockups with a predictable supply schedule and providing a clearer exit strategy for holders who previously lacked one. The proposal has garnered near-unanimous backing, with 99.5% of voters expressing support.
The voting process also sheds light on the governance framework of WLFI. Voter turnout is consistent with previous proposals, indicating that a small group of major stakeholders can drive significant tokenomic changes with minimal opposition. Voting power is concentrated among a small group of major 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, thereby exerting substantial influence over the outcome. Additionally, WLFI is 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.