A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on the verge of passing, with initial voting results showing overwhelming support. The proposed plan involves founders, team members, and partners relinquishing 10% of their token holdings, approximately 4.5 billion WLFI, to initiate a five-year unlocking schedule for the remaining 40.7 billion tokens following a two-year lockup period. Due to the lockup periods, no tokens will be released into the market for at least two years.
This development 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. The proposal has received near-unanimous support, with 99.5% of voters backing the plan.
The voting results also shed light on the governance structure of WLFI. Voter turnout is consistent with previous proposals, indicating that a small group of large holders can drive significant tokenomic changes with minimal opposition. Voting power is concentrated among a small group of major 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, thereby holding substantial influence over 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.