A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on the verge of passing with overwhelming support from early voters, exceeding the required quorum and demonstrating near-unanimous approval. The plan involves a token burn of 10% of holdings by founders, team members, and partners, equivalent to approximately 4.5 billion WLFI, which will initiate the unlocking of the remaining 40.7 billion tokens over a five-year period following a two-year lockup.
This restructuring introduces predictability to the token's supply and provides a clearer exit strategy for holders. The voting results, with 99.5% in favor, highlight the concentrated nature of WLFI's governance, where a small group of large holders wield significant influence over tokenomic decisions, with the largest wallet holding nearly 13% of the votes and the top four wallets controlling around 40% of the total voting power.
Meanwhile, World Liberty Financial is facing a lawsuit from Tron founder Justin Sun, who claims his tokens were frozen and his governance rights were revoked, allegations the company has denied.