Proposal Extends Lock-Ups for Early Supporters
On April 15, 2026, World Liberty Financial (WLFI) released a controversial governance proposal that would extend lock-up and vesting periods for a large portion of its WLFI tokens. The plan targets 62.28 billion tokens held by founders, team members, advisors, partners, and early supporters.
Specifically:
- Founders, team, advisors, and partners (45.2 billion tokens) would face a two-year cliff followed by a three-year linear vesting, plus a mandatory 10% burn (up to 4.5 billion tokens).
- Early supporters (over 17 billion tokens) would see a two-year cliff followed by a two-year linear vesting, with full distribution by year four.
Holders who do not opt in remain under indefinite lock-up. The proposal requires a quorum of 1 billion WLFI tokens and a simple majority to pass, with a seven-day voting period, per The Block.
Justin Sun’s Harsh Criticism
Tron founder Justin Sun, the largest individual WLFI investor, strongly condemned the proposal on X, calling it “one of the most absurd governance scams” he has ever seen. Sun argued the structure creates a “logical trap”:
- Voting against it results in indefinite locking.
- Many large holders, including himself, have had tokens frozen, excluding them from voting.
- Real control lies with an anonymous multisig wallet and a guardian externally owned account that can blacklist addresses, making governance “theater,” per Sun.
Sun described the process as coercion rather than democracy, claiming it punishes dissent while rewarding agreement. He also alleged undisclosed backdoor controls allow unilateral freezing of assets without notice or recourse.
Broader Community Backlash
Sun’s criticism resonated widely on X, with many holders expressing frustration and considering class-action lawsuits. Common complaints include:
- Feeling coerced into accepting longer locks or remaining indefinitely locked.
- Concerns that full unlocks in 2030 (after Trump’s term) could crash WLFI’s value to near zero.
- Suspicion around recent moves, such as using 5 billion WLFI as collateral on Dolomite (co-founded by a WLFI advisor) to borrow $75 million in stablecoins.
Many users viewed the proposal as favoring insiders while restricting retail and early supporters. WLFI has dismissed much of the criticism as “FUD” and has not yet issued a detailed response to Sun’s latest accusations.
What This Means for WLFI and the Market
The feud highlights ongoing tensions around centralization, transparency, and governance in Trump-linked crypto projects. While WLFI positions the proposal as promoting “long-term alignment,” critics see it as a way to retain control and delay liquidity.
WLFI has yet to respond to mounting disapproval. The proposal is open for community feedback before a formal vote.
For investors, this serves as a reminder to carefully review governance proposals and tokenomics, especially in projects with political ties or complex vesting structures.
Bitcoin and broader crypto markets remain largely unaffected so far, but prolonged controversy could impact sentiment toward similar ventures.
