A proposal by World Liberty Financial to unlock 62 billion WLFI tokens has garnered overwhelming support, with the majority of votes already surpassing the required quorum and showing near-unanimous backing. The 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, following a two-year waiting period. As a result, no tokens will enter the market for at least two years due to the cliff period. 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.
With 99.5% of voters supporting the proposal, it highlights the concentrated nature of WLFI's governance, where a small group of large holders wield significant influence over tokenomic decisions, with the largest wallet accounting for nearly 13% of the votes cast and the top four wallets controlling around 40% of the total voting power. Furthermore, World Liberty Financial is currently facing a lawsuit from Tron founder Justin Sun, who claims that his tokens were frozen and his governance rights were revoked, allegations that the company has denied.