A proposal by World Liberty Financial to release 62 billion WLFI tokens has garnered overwhelming support, with voting results showing nearly unanimous approval. The proposed plan involves burning 10% of token holdings, equivalent to approximately 4.5 billion WLFI, held by founders, team members, and partners.
This burn would initiate a five-year unlocking schedule for the remaining 40.7 billion tokens, following a two-year waiting period. The introduction of a cliff period ensures that no tokens will enter the market for at least two years, marking a significant shift in the valuation structure of WLFI.
This change replaces indefinite lockups with a predictable supply schedule, providing a clearer exit strategy for holders. With 99.5% of voters supporting the proposal, the outcome highlights the concentrated nature of WLFI's governance structure. Voter participation is 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 few 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.
Meanwhile, World Liberty Financial is facing a lawsuit from Tron founder Justin Sun, who claims that his tokens were frozen and his governance rights were revoked, allegations that the company has denied.