Justin Sun Condemns WLFI's Governance Proposal as 'Absurd Scam'

A public feud between Justin Sun and WLFI escalated after Sun denounced a new governance proposal, labeling it a 'governance scam'. He claimed that token holders who vote against the proposal risk having their tokens locked indefinitely and that he and other large holders were excluded from the process. Sun questioned the authority of the vote, suggesting that control lies with anonymous wallet addresses. The proposal in question would overhaul token lockups, subjecting over 62 billion WLFI tokens to new terms, including multi-year lockups and vesting schedules. Insiders would face a two-year lockup, followed by a three-year gradual release, and a 10% token burn. Holders who do not accept the new terms would remain locked indefinitely. Simon Dedic, founder of Moonrock Capital, also pushed back, stating that early investors had been 'rugged'. A World Liberty Financial spokesperson countered that the proposal was designed to align participants for the long term, ensuring healthy market supply. The backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, which has been building for months.