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 nearly unanimous backing. The plan involves founders, team members, and partners surrendering 10% of their token holdings, approximately 4.5 billion WLFI, to initiate a five-year unlock schedule for the remaining 40.7 billion tokens following a two-year lockup period.
As a result, 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 proposal has received 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 minimal opposition. The largest wallet holds nearly 13% of the votes cast, and the top four wallets combined control around 40% of the total voting power, sufficient to substantially influence the outcome.
Additionally, World Liberty Financial is facing a lawsuit from Tron founder Justin Sun, who claims that the project froze his tokens and revoked his governance rights, allegations that the company has denied.