Justin Sun denounces WLFI four-year token lock

Justin Sun criticized World Liberty Financial after the project posted a governance proposal that would keep roughly 17 billion early-investor tokens non-tradable until 2030. The proposal, published Wednesday on WLFI’s governance forum, schedules a vote one week after posting. WLFI’s post notes that about 80% of those holdings are already locked.

The plan would block early investors from trading for two years and then place remaining tokens under a two-year vesting schedule. If the measure passes, affected tokens would not be fully tradable until 2030.

Sun, the largest investor in the project, wrote on X that the proposal is “packaged as ‘governance alignment signals’ and ‘long-term commitments,’” and called it “one of the most absurd governance scams I’ve ever seen.” He described the proposal as “tyrannical” and asserted his voting tokens have been frozen, leaving him unable to participate despite controlling roughly 4% of the voting power.

He raised concerns about WLFI’s control structure, saying the protocol’s smart contract is governed by a three-of-five anonymous multisignature wallet and that an anonymous guardian externally owned account can blacklist addresses, ignore votes and act at the contract level. He wrote, “This isn’t decentralized governance; it’s dictatorship dressed in DAO clothing.”

Sun also criticized voter requirements, saying those who want to cast ballots must complete identity checks, sign electronically and meet compliance standards while operational signers remain unnamed. He urged WLFI holders to oppose the proposal and to preserve legal rights, calling the vote results illegitimate.

Comments under Sun’s posts mixed criticism and personal attacks. Some users blamed him for past losses tied to projects associated with him, with one commenter claiming a $100,000 loss on a token called $SUNDOG. Other replies defended WLFI or criticized Sun’s past actions.

The dispute centers on how WLFI would enforce vesting and who holds operational control over the protocol. The proposal remains scheduled for a community vote one week after its posting.