A proposal by World Liberty Financial to release 62 billion WLFI tokens is on track to pass with overwhelming support, having already surpassed the required quorum and garnered near-unanimous backing. The proposed plan involves key stakeholders, including founders, team members, and partners, relinquishing 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 waiting period. Due to the cliff periods, no tokens will enter the market for at least two years, marking a significant shift in the valuation structure of WLFI by replacing open-ended lockups with a predictable supply schedule and providing a clearer exit strategy for holders who previously lacked one. The proposal has garnered an overwhelming 99.5% approval rate.
The voting process also sheds light on the governance structure of WLFI, with participation levels mirroring those of previous proposals, indicating that a small group of major stakeholders can drive significant tokenomic changes with minimal opposition. Voting power is concentrated among a handful of large stakeholders, with the largest wallet accounting for nearly 13% of the votes cast and the top four wallets collectively controlling around 40% of the total voting power, thereby wielding substantial influence over the outcome. Additionally, WLFI is currently embroiled in a lawsuit with Tron founder Justin Sun, who alleges that the project froze his tokens and revoked his governance rights, claims that the company has denied.