A proposal by World Liberty Financial to release 62 billion WLFI tokens is on track to be approved, with initial voting results showing overwhelming support. The plan involves key stakeholders burning 10% of their token holdings, approximately 4.5 billion WLFI, to initiate a scheduled release of the remaining 40.7 billion tokens over a 5-year period, following a 2-year lock-up.
This change aims to introduce predictability to the token's valuation by replacing indefinite lock-ups with a clear supply schedule, providing a more defined exit strategy for holders. The proposal has garnered 99.5% support from voters, underscoring the centralized nature of WLFI's governance structure.
Notably, a small group of major holders wield significant influence over the voting process, with the largest wallet holding nearly 13% of the votes and the top four wallets collectively controlling around 40% of the total voting power. Meanwhile, World Liberty Financial is facing a lawsuit from Justin Sun, founder of Tron, who claims his tokens were frozen and his governance rights were revoked, allegations the company has denied.