A proposal by World Liberty Financial to release 62 billion WLFI tokens has gained significant traction, with initial votes surpassing the required threshold and showing almost unanimous approval. The proposed plan involves a 10% reduction in holdings for founders, team members, and partners, amounting to approximately 4.5 billion WLFI tokens, which would initiate the unlocking of the remaining 40.7 billion tokens over five years, following a two-year waiting period.
Due to the cliff periods, no tokens will be available on the market for at least two years. This change introduces a more predictable token supply and provides a clearer exit strategy for holders who previously lacked one.
The proposal has garnered 99.5% support, indicating broad consensus. The voting results also shed light on the governance structure of WLFI. Voter turnout is consistent with previous proposals, suggesting that a small group of major holders can drive significant tokenomic changes with minimal resistance. Voting power is concentrated among a few large holders, with the largest wallet holding nearly 13% of the votes cast and the top four wallets collectively controlling around 40% of the total voting power, giving them substantial influence over the outcome.
Additionally, WLFI is facing a lawsuit from Tron founder Justin Sun, who claims that the project froze his tokens and revoked his governance rights, allegations that the company has denied.