A proposal by World Liberty Financial to release 62 billion WLFI tokens is on the verge of passing with overwhelming support from early voters, surpassing the required quorum. The plan involves a 10% burn of holdings by founders, team members, and partners, amounting to approximately 4.5 billion WLFI, which would initiate the unlocking of the remaining 40.7 billion tokens over a five-year period, starting after a two-year lockup.
This strategic move introduces a predictable token supply and provides a clearer exit strategy for holders. The near-unanimous approval rate of 99.5% underscores the broad support for this proposal.
However, the voting dynamics also reveal a concentrated power structure, with a small group of large holders wielding significant influence over the outcome. Notably, the largest wallet holds nearly 13% of the voting power, while the top four wallets collectively control around 40% of the total voting power. Meanwhile, World Liberty Financial is facing a lawsuit from Justin Sun, the founder of Tron, who alleges that his tokens were frozen and his governance rights were revoked, claims that the company has denied.