A proposal by World Liberty Financial to release 62 billion WLFI tokens is on the verge of passing, with the majority of early votes exceeding the required quorum and showing near-unanimous support. The proposal outlines a plan where founders, team members, and partners will relinquish 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 cliff period. As a result, no tokens will be released into the market for at least two years, replacing indefinite lockups with a predictable supply schedule and providing a clearer exit strategy for holders. The proposal has garnered 99.5% support, highlighting the concentrated voting power among a small group of large token holders.
The largest wallet holds nearly 13% of the votes, while the top four wallets collectively control around 40% of the total voting power, allowing them to significantly influence the outcome. Meanwhile, World Liberty Financial is facing a lawsuit from Tron founder Justin Sun, who claims that his tokens were frozen and his governance rights were revoked, allegations that the company has denied.