A proposal by World Liberty Financial to release 62 billion WLFI tokens is on track to pass with overwhelming support, having already surpassed the required quorum with near-unanimous backing. The proposed plan involves founders, team members, and partners surrendering 10% of their token holdings, equivalent to approximately 4.5 billion WLFI, to initiate a five-year unlocking schedule for the remaining 40.7 billion tokens following a two-year waiting period.
Due to the cliff period, no tokens will be released into the market for at least two years. This change marks a significant shift in the valuation structure of WLFI, replacing indefinite lockups with a predictable supply schedule and providing a clearer exit strategy for holders who previously lacked one.
With 99.5% of voters in favor, the proposal has garnered near-unanimous support. The voting results also shed 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.
Voting power is concentrated among a small group 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, sufficient to substantially influence the outcome independently. Additionally, WLFI is facing a lawsuit from Tron founder Justin Sun, who alleges that the project froze his tokens and revoked his governance rights, claims that the company has denied.