Apr 16, 2026 06:34
Justin Sun calls World Liberty Financial’s new vesting plan ‘absurd governance scam’ as early investors face 4-year token lockups or indefinite freezes.
World Liberty Financial, the Trump family’s crypto venture, sparked investor fury this week after proposing to extend early supporter token lockups by up to four years—with those who reject the terms facing indefinite freezes on their holdings.
The governance proposal, posted April 15, would force WLFI token holders to accept a two-year lockup followed by a two-year vesting release schedule. The alternative? Tokens remain locked with no defined unlock date.
Sun Calls It ‘Tyranny’
Justin Sun, the Tron founder who invested $30 million to become World Liberty’s largest outside backer with a 4% stake, didn’t mince words. “This is one of the most absurd governance scams I have ever seen,” Sun posted on X, calling the proposal “coercion.”
Sun’s criticism carries extra weight because his tokens are currently frozen by the platform, effectively silencing him in the very vote that determines their fate. He claims “a large number of holders with significant voting rights are in the same position”—locked out of deciding whether to accept being locked up.
The irony isn’t lost on observers. A governance token that strips governance rights from dissenting holders undermines the entire premise of decentralized decision-making.
Market Already Pricing In the Pain
WLFI traded flat at roughly $0.08 over the past 24 hours, but the longer-term picture tells a grimmer story. The token has shed more than 40% year-to-date and sits 75% below its September 1 all-time high of $0.33—the first day it became tradable after holders voted to unlock the originally non-transferable token.
With a $2.56 billion market cap now at stake, the proposed changes affect real money. The unlock plan covers 62.3 billion WLFI tokens and includes a separate 4.52 billion token burn from insider allocations, though critics see this as window dressing.
‘Squeezing the Same Lemon’
Simon Dedic, founder of Moonrock Capital, offered a blunter assessment. Early investors “who thought they were sitting on solid profits just got rugged,” he posted, noting the timing conveniently aligns with the remainder of Donald Trump’s presidential term.
“This essentially gives them another shot at squeezing the same lemon they’ve been inflating with hot air for the past two years,” Dedic added.
World Liberty spokesman David Wachsman defended the proposal in an emailed statement, saying it “was designed to further align all the participants in the WLFI ecosystem for the long run.” He confirmed voting would begin soon and run for one week.
What Happens Next
The outcome hinges on whether enough unfrozen tokens vote to pass the measure—a concerning dynamic when the platform apparently controls which wallets can participate. Sun previously accused World Liberty of maintaining blacklist capabilities, which the platform denied.
For holders weighing their options, the math is ugly either way: accept a four-year timeline on tokens already down 75%, or refuse and watch them sit frozen indefinitely while the market moves on without you.
Image source: Shutterstock
