Justin Sun has criticised a new governance proposal from World Liberty Financial, calling it “absurd” and accusing the project of penalising dissenting token holders.
The proposal would impose multi-year lockups and vesting schedules on more than 62 billion WLFI tokens, with holders who reject the plan facing indefinite lockups and exclusion from governance participation.
It also includes a potential burn of up to 4.5 billion tokens and introduces stricter release schedules for insiders, while some wallet structures retain the ability to override votes and blacklist users.
“This proposal is not governance,”
Sun said, adding:
“It is an exercise of power by the selected few who are carefully engineering a further power consolidation and property expropriation operation.”
A spokesperson for World Liberty Financial said the changes are designed to “align all the participants in the WLFI ecosystem for the long-run” and ensure healthier token supply dynamics.
The dispute follows escalating tensions between Sun and the project, including prior blacklisting of his wallet and threats of legal action tied to earlier allegations of DeFi-related misconduct.
The conflict has raised broader concerns about governance transparency in crypto projects, particularly where token voting structures may be overridden by concentrated control.
At the time of reporting, World Liberty Financial price was $0.08061.