A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on the verge of passing, with overwhelming support from early voters. The plan involves burning 10% of founders', team members', and partners' holdings, approximately 4.5 billion WLFI, to initiate a five-year unlocking schedule for the remaining 40.7 billion tokens after a two-year lockup period.
This move marks a significant shift in WLFI's valuation structure, replacing indefinite lockups with a predictable supply schedule and providing a clearer exit strategy for holders. The proposal has received near-unanimous backing, with 99.5% of voters in favor. However, the voting process also highlights the concentrated nature of WLFI's governance, with a small group of large holders wielding significant influence over tokenomic decisions. The largest wallet holds nearly 13% of the votes cast, while the top four wallets collectively control around 40% of the total voting power, allowing them to substantially impact the outcome.
Additionally, 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.