Key Takeaways
- Tron founder Justin Sun labeled WLFI’s governance plan as “one of the most absurd governance scams” in the crypto space
- More than 62 billion WLFI tokens would face lockup periods extending up to four years, with indefinite freezes for those declining the terms
- Sun alleges his 4% ownership position has been frozen, preventing him from participating in governance votes
- Moonrock Capital’s Simon Dedic accused the Trump family of executing a “rug pull” on early backers
- World Liberty Financial defends the measure as necessary for “long-term participation” and ecosystem health
Donald Trump’s cryptocurrency venture World Liberty Financial is facing intense scrutiny following the unveiling of a governance initiative that would freeze early participant tokens for extended periods — or permanently for those who decline to accept the revised conditions.
The controversial measure, published to WLFI’s governance platform this Wednesday, would impose new lockup requirements on over 62 billion WLFI tokens. Core team personnel, advisory board members, and strategic partners would see their holdings locked for two years, followed by a gradual three-year release schedule. Initial supporters receive marginally more favorable vesting conditions but still encounter multi-year restrictions before gaining access to their assets.
Those who choose to reject these revised conditions would see their tokens frozen without a defined timeline, leaving them in regulatory limbo with no guaranteed access mechanism.
The framework also includes provisions to permanently eliminate up to 4.5 billion tokens, while requiring insiders who agree to the new structure to accept a 10% token burn as part of their participation.
The initiative triggered fierce opposition from Justin Sun, Tron’s founder and among WLFI’s largest stakeholders. Sun characterized the strategy as “one of the most absurd governance scams I have ever seen” through a statement on 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 indicates he maintains approximately 4% ownership in World Liberty, though his holdings are presently inaccessible. He contends this restriction has effectively barred him from the decision-making process.
He further questioned the true power structure within the protocol. According to Sun, unidentified wallet addresses — including a multi-signature wallet with veto authority and another account capable of blacklisting participants — wield genuine control over governance outcomes.
“This proposal is not governance,” Sun stated. “It is an exercise of power by the selected few.”
Community Opposition Intensifies
Sun’s criticism wasn’t isolated. Simon Dedic, who established Moonrock Capital, claimed early participants had been subjected to a “rug pull” orchestrated by the Trump family.
Dedic posted on X that the action seemed designed to give the initiative “another shot at squeezing the same lemon,” with timing that coincidentally matches the duration of Donald Trump’s remaining presidency.
He further condemned what he described as “blatant misconduct” executed with minimal attempt at concealment.
Escalating Tensions With Long-Standing Roots
The conflict between Sun and WLFI traces back to September, when the project blacklisted a blockchain wallet associated with Sun containing approximately $107 million worth of governance tokens.
This represented a dramatic shift from late 2024, when Sun committed $30 million to WLFI and assumed an advisory position.
The relationship deteriorated after WLFI deposited 5 billion of its native tokens into Dolomite, a lending protocol co-created by one of its advisers, and secured roughly $75 million in stablecoin loans. The token’s value plummeted 12% to a new all-time low the next day.
Sun openly criticized the project for exploiting users as “personal ATMs.” World Liberty Financial countered with warnings of potential litigation.
A WLFI representative informed CoinDesk the proposal “aims to optimally ensure long-term participation in our ecosystem and help ensure healthy market supply.”
The voting period on this proposal is scheduled to commence shortly and will remain open for seven days. The WLFI token currently trades near 8 cents, representing a decline exceeding 40% year-to-date and more than 75% below its peak price of 33 cents.
