A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on track to pass with overwhelming support, having surpassed the required quorum and garnered near-unanimous backing from voters. The plan involves the burning of 10% of holdings by founders, team members, and partners, amounting to approximately 4.5 billion WLFI tokens, which would initiate the unlocking of the remaining 40.7 billion tokens over a five-year period, following a two-year lockup. 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 voting results show 99.5% support for the proposal, highlighting the concentrated nature of WLFI's governance, where a small group of large holders wield substantial influence over major tokenomic decisions, with 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.