A proposal by World Liberty Financial to unlock 62 billion WLFI tokens has garnered widespread support, with the majority of votes exceeding the required threshold and showing near-unanimous backing. The proposed plan involves insiders, including founders, team members, and partners, relinquishing 10% of their token holdings, equivalent to approximately 4.5 billion WLFI tokens.
This initial burn would initiate the unlocking of the remaining 40.7 billion tokens over a five-year period, following a two-year lockup. As a result of the cliff period, no tokens will be released into the market for at least two years. This change 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 received overwhelming support, with 99.5% of voters in favor. The voting results also shed light on the governance structure of WLFI.
Voter participation is consistent with previous proposals, indicating that a small group of large token holders can drive significant changes to the token's economy with minimal opposition. Voting power is concentrated among a handful of major 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, giving them substantial influence over the outcome.
Additionally, World Liberty Financial is facing a lawsuit from Justin Sun, the founder of Tron, who claims that his tokens were frozen and his governance rights were revoked, allegations that the company has denied.