A proposal by World Liberty Financial to unlock a substantial 62 billion WLFI tokens has garnered significant support, with the majority of votes exceeding the required quorum and showing near-unanimous approval. The plan involves a token burn of approximately 4.5 billion WLFI, or 10% of holdings, by founders, team members, and partners. This burn would initiate the unlocking of the remaining 40.7 billion tokens over a five-year period, following an initial two-year lockup.
As a result, no tokens will be released into the market for at least two years due to the cliff period. This development marks a significant shift in the valuation structure of WLFI, replacing indefinite lockups with a predictable supply schedule and providing a clearer exit strategy for holders. The vote, with 99.5% in favor, highlights the concentrated nature of WLFI's governance, where participation levels are consistent with previous proposals, indicating that a small group of large holders can drive major tokenomic changes with minimal opposition.
Notably, the largest wallet holds nearly 13% of the votes cast, and the top four wallets combined control around 40% of the total voting power, enabling them to significantly influence outcomes. 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.