A proposal by World Liberty Financial to unlock a vast number of WLFI tokens, 62 billion, is on the verge of approval, garnering widespread support from voters. The proposed plan involves key stakeholders burning 10% of their token holdings, approximately 4.5 billion WLFI, which would initiate a five-year unlocking process for the remaining 40.7 billion tokens after a two-year waiting period.
As a result of this cliff period, no tokens will enter the market for at least two years, signaling a significant shift in the valuation structure of WLFI by replacing indefinite lockups with a predictable supply schedule, thus providing a clearer exit strategy for holders. This decision has garnered nearly unanimous backing, with 99.5% of voters expressing their support. The voting results also shed light on the governance structure of WLFI, revealing that participation rates are consistent with previous proposals, indicating that a small but influential group of major token holders can drive significant tokenomic changes with minimal opposition.
The concentration of voting power among a select few is notable, with the largest wallet holding 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. Moreover, WLFI is currently embroiled in a lawsuit filed by Tron founder Justin Sun, who alleges that his tokens were frozen and his governance rights revoked, claims that the company has vehemently denied.