Key Takeaways
- Tron founder Justin Sun labeled WLFI’s latest governance proposal as an unprecedented “governance scam”
- More than 62 billion WLFI tokens face potential lockup periods extending to four years under the new plan
- Token holders refusing to accept the updated terms could see their assets locked permanently
- Simon Dedic of Moonrock Capital accused the Trump family of executing a “rug pull” on initial backers
- World Liberty Financial defends the measure as necessary for sustainable ecosystem growth
World Liberty Financial, the cryptocurrency venture associated with Donald Trump, is facing intense scrutiny following the unveiling of a governance initiative that threatens to immobilize early backers’ tokens for extended periods — potentially forever for those declining the revised conditions.
Released Wednesday on WLFI’s official governance platform, the contentious proposal targets over 62 billion WLFI tokens with stringent new vesting schedules. Internal team members, strategic advisers, and affiliated partners would see their holdings frozen for two years, followed by a gradual three-year unlock period. Early project supporters receive moderately relaxed terms but still confront years of restricted token access.
Anyone declining these updated conditions faces an indefinite freeze on their holdings, with no guaranteed mechanism for future release.
The framework also includes provisions to permanently destroy up to 4.5 billion tokens, while insiders accepting the new terms must accept a 10% token burn upon agreement.
The initiative triggered fierce condemnation from Justin Sun, Tron’s creator and among WLFI’s largest stakeholders. Sun characterized the scheme as “one of the most absurd governance scams I have ever seen” in a statement posted to X.
This Is World Tyranny, Not World Liberty Financial — Here's Why
This proposal has been packaged as a "governance alignment signal" and a "long-term commitment," but strip away the packaging and what you have is one of the most absurd governance scams I have ever seen. Let me… https://t.co/sJhFMnLWsJ
— H.E. Justin Sun 👨🚀 🌞 (@justinsuntron) April 15, 2026
Sun disclosed holding approximately 4% of World Liberty’s total supply, though his tokens remain currently immobilized. This freeze effectively bars him from participating in governance decisions.
He further questioned the true power structure behind the protocol, highlighting that unidentified wallet addresses — including a multi-signature wallet capable of vetoing votes and another account with blacklisting capabilities — wield disproportionate influence over decision-making.
“This proposal is not governance,” Sun declared. “It is an exercise of power by the selected few.”
Community Opposition Intensifies
Sun’s complaints found resonance among other stakeholders. Simon Dedic, who founded Moonrock Capital, accused the Trump family of executing a “rug pull” against original investors.
In a post on X, Dedic suggested the maneuver represented an attempt to give the initiative “another shot at squeezing the same lemon,” with timing coinciding suspiciously with Donald Trump’s remaining presidential tenure.
Dedic further condemned what he characterized as “blatant misconduct” conducted with minimal attempt at concealment.
Long-Simmering Tensions Reach Boiling Point
The antagonism between Sun and WLFI traces back to September, when administrators blacklisted a cryptocurrency address connected to Sun containing approximately $107 million worth of governance tokens.
This action marked a dramatic shift from late 2024, when Sun committed $30 million to WLFI and assumed an advisory position with the project.
Relations deteriorated further when WLFI deposited 5 billion of its native tokens into Dolomite, a lending platform co-created by one of its own advisers, subsequently borrowing roughly $75 million in stablecoins. The token’s value plummeted 12% to an unprecedented low the next day.
Sun publicly condemned the project for exploiting users as “personal ATMs.” World Liberty Financial countered with warnings of potential litigation.
A World Liberty Financial representative told CoinDesk the proposal “aims to optimally ensure long-term participation in our ecosystem and help ensure healthy market supply.”
The voting period for this controversial proposal is scheduled to commence shortly and will remain open for seven days. WLFI tokens currently trade near 8 cents, representing a decline exceeding 40% year-to-date and more than 75% below the all-time peak of 33 cents.
