A proposal by World Liberty Financial to unlock a massive 62 billion WLFI tokens is on track to pass with overwhelming support, having already surpassed the required quorum and garnered near-unanimous approval. According to the plan, key stakeholders, including founders, team members, and partners, will initially burn 10% of their token holdings, equivalent to approximately 4.5 billion WLFI, to initiate the gradual release of the remaining 40.7 billion tokens over a five-year period, following a two-year lockup. As a result, no tokens will enter the market for at least two years due to the cliff period. This development marks a significant shift in the valuation structure of WLFI, replacing open-ended lockups with a predictable supply schedule and providing a clearer exit strategy for holders who previously lacked one.
The proposal has received an overwhelming 99.5% of votes in favor. The voting process also sheds light on the governance structure of WLFI, with participation levels consistent with previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with minimal opposition. Notably, voting power is heavily concentrated among a handful of large holders, 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 exerting substantial influence over the outcome.
Additionally, WLFI is facing a lawsuit from Tron founder Justin Sun, who alleges that his tokens were frozen and his governance rights were revoked, claims that the company has denied.