A proposal by World Liberty Financial to unlock 62 billion WLFI tokens is on track to pass with overwhelming support, having surpassed the required quorum and garnered near-unanimous approval in the early voting stages. 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 lock-up period.
As a result, no tokens will be released into the market for at least two years due to the cliff periods in place. This development marks a significant shift in the valuation structure of WLFI, replacing indefinite lock-ups with a predictable supply schedule and providing a clearer exit strategy for holders who previously lacked one. With 99.5% of voters backing the proposal, it has garnered substantial support.
The voting process also sheds light on the governance structure of WLFI, revealing that participation levels are consistent with previous proposals. This suggests that a small group of major holders can drive significant tokenomic changes with minimal opposition. The concentration of voting power among a few large holders is notable, 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 exerting considerable influence over the outcome. Additionally, WLFI is currently 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.