A proposal by World Liberty Financial to unlock a substantial 62 billion WLFI tokens is on track to pass with ease, garnering nearly unanimous support in the early voting stages. The plan involves key stakeholders burning 10% of their token holdings, approximately 4.5 billion WLFI, to initiate a five-year unlocking schedule for the remaining 40.7 billion tokens following a two-year lockup period.
This strategic move aims to introduce a predictable token supply and provide a clearer exit strategy for holders. With 99.5% of voters in favor, the proposal highlights the concentrated nature of WLFI's governance, where a small group of large holders wield significant influence over tokenomic decisions. Notably, the largest wallet holds nearly 13% of the voting power, and the top four wallets combined control around 40% of the total voting power, raising concerns over the distribution of governance rights.
Meanwhile, World Liberty Financial is also embroiled in a lawsuit with Tron founder Justin Sun, who claims his tokens were frozen and his governance rights were revoked, allegations the company has denied.