A proposal put forth by World Liberty Financial to unlock 62 billion WLFI tokens has garnered significant support, with early voting results exceeding the required threshold and showing near-unanimous approval. The proposed plan involves founders, team members, and partners relinquishing 10% of their token holdings, approximately 4.5 billion WLFI, to initiate a five-year unlocking schedule for the remaining 40.7 billion tokens after a two-year waiting period. As a result, no tokens will be released into the market for at least two years due to the cliff periods.
This development marks a significant shift in the valuation structure of WLFI, replacing indefinite lockups with a predictable future supply and providing a clearer exit strategy for holders who previously lacked one. With 99.5% of voters supporting the proposal, it appears to have widespread backing.
However, the voting process also highlights the concentrated nature of WLFI's governance, with participation levels similar to those seen in previous proposals, suggesting that a small group of major holders can drive significant tokenomic changes with minimal opposition. The largest wallet holds nearly 13% of the votes cast, while the top four wallets combined control approximately 40% of the total voting power, giving them substantial influence over the outcome.
Additionally, 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.