The proposal to unlock 62 billion WLFI tokens by World Liberty Financial is poised for approval, having surpassed quorum early and garnered near-unanimous support. The plan involves founders, team members, and partners burning approximately 10% of their holdings, around 4.5 billion WLFI, setting in motion the unlocking of the remaining 40.7 billion tokens over five years following a two-year cliff period.
No tokens will be released to the market during these initial two years due to the cliff conditions. This transition represents a significant shift from open-ended lockups to a predictable supply schedule, offering holders a clearer exit strategy where none previously existed.
The proposal has received overwhelming support, with 99.5% of votes in favor. The voting structure indicates that a small group of large stakeholders can drive substantial tokenomic changes with minimal opposition. Voting power is concentrated among these key players, with the largest wallet holding nearly 13% of the vote and the top four collectively controlling about 40% of total voting power.
Additionally, World Liberty Financial faces litigation from Tron founder Justin Sun, who accuses the company of freezing his tokens and revoking his governance rights. These claims have been denied by the company.