A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on track to pass with overwhelming support, having surpassed the quorum threshold with near-unanimous backing from early voters. The plan involves a vesting schedule for founders, team members, and partners, who will 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 cliff.
This approach ensures that no tokens will enter the market for at least two years, introducing a predictable supply and a clearer exit strategy for holders. The proposal has garnered 99.5% support, highlighting the concentrated nature of WLFI's governance, where a small group of large holders wield significant influence over tokenomic decisions. The largest wallet holds nearly 13% of the voting power, while the top four wallets collectively control around 40% of the total voting power, allowing them to substantially impact the outcome. 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.