A proposal by World Liberty Financial to unlock 62 billion WLFI tokens has garnered overwhelming support, with voting results indicating a near-unanimous decision. The proposed plan involves the burning of 10% of token holdings by founders, team members, and partners, equivalent to approximately 4.5 billion WLFI, which would initiate the unlocking of the remaining 40.7 billion tokens over a five-year period following a two-year waiting period.
Due to the cliff period, no tokens will be released into the market for at least two years, marking a significant shift in the valuation structure of WLFI by replacing indefinite lockups with a predictable supply schedule and providing a clearer exit strategy for holders. With 99.5% of voters in favor, the move has received widespread approval. 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 large holders can drive major tokenomic changes with limited resistance. Voting power is concentrated among a handful 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, giving them significant influence over the outcome.
Additionally, WLFI 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.