A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on the verge of passing, with a significant majority of early voters expressing their support. The plan involves a token burn of approximately 4.5 billion WLFI, or 10% of the holdings of founders, team members, and partners, which would initiate a five-year unlocking schedule for the remaining 40.7 billion tokens following a two-year lockup period. As a result, no tokens will be released into the market for at least two years, introducing a predictable supply schedule and a clearer exit strategy for holders. The proposal has received nearly unanimous support, with 99.5% of voters in favor.
However, the voting process has also highlighted the concentrated nature of WLFI's governance, with a small group of large holders wielding significant influence over the outcome. The largest wallet alone accounts for nearly 13% of the votes cast, while the top four wallets collectively control around 40% of the total voting power. Additionally, World Liberty Financial 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.