A proposal by World Liberty Financial to release 62 billion WLFI tokens has garnered overwhelming support, with initial votes surpassing the required threshold and nearing a unanimous decision. The proposed plan involves founders, team members, and partners relinquishing 10% of their token holdings, approximately 4.5 billion WLFI, to initiate the release of the remaining 40.7 billion tokens over a five-year period, preceded by a two-year waiting period.
No tokens will be released into the market for at least two years due to the waiting period. This change signifies a shift in the valuation structure of WLFI, replacing indefinite lockups with a predictable supply schedule, thus providing a clearer exit strategy for holders who previously lacked one. With 99.5% of voters supporting the proposal, the outcome appears to be almost unanimous. The voting results also shed light on the governance structure of WLFI.
Voter participation is consistent with previous proposals, suggesting that a small group of major holders can drive significant token-related changes with minimal opposition. Voting power is concentrated among a small group of major holders, 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, thereby wielding significant 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.