A proposal by World Liberty Financial to release 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 after a two-year waiting period. As a result, no tokens will enter the market for at least two years due to the cliff period.
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. With 99.5% of voters in favor, the proposal has gained widespread support. However, the voting process also highlights the concentrated nature of WLFI's governance, with participation levels consistent with previous proposals, indicating that a small group of major holders can drive significant tokenomic changes with limited opposition.
Notably, voting power is heavily concentrated among a few 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, thereby exerting substantial influence over the outcome. 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.