A proposal by World Liberty Financial to release 62 billion WLFI tokens is on the verge of passing with overwhelming support from early voters. The proposed plan involves burning 10% of the founders', team members', and partners' token holdings, equivalent to 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 lock-up.
Due to the cliff periods, no tokens will be released into the market for at least two years. This change signifies a shift in the valuation structure of WLFI, replacing indefinite lock-ups with a predictable supply schedule and providing a clearer exit strategy for holders who previously lacked one. The proposal has garnered near-unanimous support, with 99.5% of voters in favor. The voting results also shed light on the governance structure of WLFI.
Voter participation is consistent with previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with minimal opposition. Voting power is concentrated among a handful of large stakeholders, with the largest wallet holding nearly 13% of the votes cast and the top four wallets collectively controlling around 40% of the total voting power, giving them substantial influence over the outcome. Additionally, WLFI is facing a lawsuit from Tron founder Justin Sun, who claims that the project froze his tokens and revoked his governance rights, allegations that the company has denied.