A proposal by World Liberty Financial to release 62 billion WLFI tokens is on the verge of passing, having garnered overwhelming support in the early stages of voting, surpassing the required quorum with ease. The proposed plan involves key stakeholders, including founders, team members, and partners, relinquishing 10% of their token holdings, approximately 4.5 billion WLFI, to initiate a staggered release of the remaining 40.7 billion tokens over five years, following an initial two-year lock-up period. Due to the lock-up period, no tokens will enter the market for a minimum of two years, marking a significant shift in the valuation structure of WLFI by replacing indefinite lock-ups with a predictable supply schedule, thereby providing a clearer exit strategy for holders who previously lacked one. The proposal has garnered near-unanimous support, with an impressive 99.5% of voters casting their ballots in favor.
The voting process also sheds light on the governance structure of WLFI, revealing that participation levels are consistent with those of previous proposals, suggesting that a small but influential group of major token holders can drive significant tokenomic changes with minimal opposition. Voting power is concentrated among a handful of large token holders, with the largest wallet accounting for nearly 13% of the votes cast and the top four wallets collectively controlling approximately 40% of the total voting power, thereby holding substantial sway over the outcome. Furthermore, WLFI is currently embroiled in a lawsuit with Justin Sun, the founder of Tron, who alleges that his tokens were frozen and his governance rights revoked, claims that the company has vehemently denied.