A proposal by World Liberty Financial to unlock 62 billion WLFI tokens has gained significant momentum, with the majority of early votes showing strong support for the plan. The proposal outlines a vesting schedule for founders, team members, and partners, who will initially burn 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. This approach introduces a predictable supply schedule and provides a clearer exit strategy for token holders. The vote has garnered near-unanimous support, with 99.5% of participants voting in favor.
However, the voting process has also highlighted the concentration of governance power among a small group of major token holders, with the largest wallet holding nearly 13% of the votes cast and the top four wallets controlling around 40% of the total voting power. Meanwhile, World Liberty Financial is 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.