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

A public feud between Justin Sun and the Trump-linked crypto project WLFI escalated on Wednesday after Sun denounced a new governance proposal, labeling it as one of the most absurd governance scams he has encountered. In a detailed post, Sun accused the project of devising a vote that penalizes token holders who oppose the proposal, with those who vote against it risking indefinite token lockups. Furthermore, he alleged that he and other significant holders had been excluded from the process, claiming that tokens representing roughly 4% of the voting power under his control had been frozen. Sun questioned the legitimacy of the vote, arguing that control over the protocol rests with anonymous wallet addresses, including a multisignature setup that can override outcomes and a separate account with the power to blacklist users. The proposal in question would overhaul token lockups across the WLFI ecosystem, subjecting over 62 billion tokens to new terms, including multi-year lockups and vesting schedules. Token holders who do not accept the new terms would remain locked indefinitely. Sun's criticism was echoed by Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial countered that the proposal was designed to align all participants in the WLFI ecosystem for the long term, ensuring optimal long-term participation and healthy market supply. The backlash marks the latest episode in the deteriorating relationship between Sun and the project, which has been escalating for months.