- A major WLFI token unlock is advancing, with structured vesting and delayed supply rollout reshaping holder expectations and market dynamics.
- Heavy backing for the proposal contrasts with governance concerns, as a small group of large wallets holds decisive voting influence.
- The plan locks tokens for two years before phased release, but highlights how concentrated ownership can steer key protocol decisions.
A governance proposal to unlock over 62 billion WLFI tokens at World Liberty Financial is nearing approval after attracting near-unanimous backing in early voting. Participation has already surpassed the required quorum, with approximately 6 billion tokens voting in favour against only a few million opposing.
The plan introduces a structured vesting approach that divides the locked supply into separate groups with distinct timelines. Founders, advisors and partners holding roughly 45 billion tokens will undergo a 10% burn before entering a two-year cliff and three-year linear distribution schedule. Meanwhile, around 17 billion tokens held by early supporters will follow a two-year lock-up followed by a shorter vesting period.
Under these terms, no new tokens will enter circulation for at least two years, delaying any immediate increase in supply. The shift replaces indefinite restrictions with a defined release schedule designed to create clearer expectations for token holders.
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Governance Concerns Emerge
However, the voting outcome has highlighted structural concerns around governance participation. Voting power is heavily concentrated, with a small number of large holders capable of determining outcomes without broader consensus. The largest wallet alone represents nearly 13% of votes, while the top four collectively control about 40%.
This dynamic allows significant changes to pass with limited opposition, underscoring ongoing questions about decentralisation within the project.
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