Justin Sun Blasts Trump-Linked WLFI’s ‘Absurd’ Governance Vote, Escalating Feud

Finance

What to know:

Things got heated on Wednesday between Tron creator Justin Sun and the team behind a cryptocurrency project with ties to Donald Trump. Sun publicly slammed a new plan for how the project is run, calling it a blatant and ridiculous attempt to mislead people.

Sun posted a lengthy message on X claiming the project is structured to penalize those who disagree. He alleges that token holders who vote against the proposal could have their tokens permanently frozen.

He stated that he and other major token holders were left out of the decision-making process, and that tokens representing about 4% of the voting power he manages were blocked.

Sun also raised doubts about the vote’s actual power, pointing out that control of the protocol rests with unknown digital wallets. He specifically mentioned a system requiring multiple signatures to approve changes, which could overturn results, and another account capable of banning users.

Sun explained in a post that this isn’t about making decisions for the community. Instead, it’s a way for a small group to gain more control and potentially take ownership of assets from others.

WLFI proposal

The main concern is WLFI’s new plan to change how tokens are locked up within its system. This proposal affects over 62 billion WLFI tokens and would introduce longer lockup periods and schedules for releasing them.

The proposal includes a lockup period of two years for tokens held by the team, advisors, and partners, followed by a three-year release schedule. Those who agree to the plan would also see 10% of their tokens destroyed. Early supporters will have a shorter lockup period, but won’t have any tokens burned. This could result in up to 4.5 billion tokens being permanently removed from circulation.

Holders who do not accept the new terms would remain locked indefinitely, per the proposal.

Sun wasn’t the only one to object. Simon Dedic, who founded Moonrock Capital, stated that early investors were essentially victims of a scam.

According to a post on X by Dedic, early investors in $WLFI lost their profits due to actions taken by the Trump family. He believes this was a scheme to allow the project to profit further from investors and called the situation an obvious case of misconduct, done without any attempt to hide it.

According to a World Liberty Financial representative, the proposal is intended to strengthen the long-term commitment of everyone involved in the WLFI system. They explained it’s meant to encourage continued participation and maintain a stable market for the asset.

Escalating feud

The backlash marks the latest episode in the breakdown in relations between Sun and the project.

Earlier this week, WLFI said they might sue Sun, claiming to have contracts and proof that Sun falsely accused them of taking advantage of users with cryptocurrency transactions.

Things have been tense with WLFI for a while now. Back in September, they suddenly blocked a crypto address connected to Justin Sun that held around $107 million worth of their governance tokens. It’s a huge shift considering I remember late 2024 when Sun was a major supporter – he put $30 million into WLFI tokens and even became an advisor to help the project grow. It feels like a complete 180!

Problems began when WLFI put 5 billion of its own tokens into the Dolomite lending platform – a platform co-founded by one of WLFI’s advisors – and then borrowed about $75 million in stablecoins. The value of the tokens then dropped 12% to an all-time low. This led Sun to publicly criticize the project, claiming it was exploiting users like personal cash machines, and ultimately resulted in new legal threats.

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2026-04-16 01:20