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 and surpassing the required quorum. The plan involves key stakeholders burning 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 enter the market for at least two years, replacing indefinite lockups with a predictable supply and providing a clearer exit strategy for holders.
The proposal has garnered nearly unanimous support, with 99.5% of voters in favor. The voting results also shed light on the governance structure of WLFI, where participation levels are consistent with previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with minimal opposition. Notably, voting power is concentrated among a few large 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. Additionally, 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.