World Liberty Financial (WLFI), a crypto platform linked to the Trump family, is under fire following a new governance proposal that could lock early investors’ tokens for up to four years, or indefinitely in some cases.
This Is World Tyranny, Not World Liberty Financial — Here’s Why
This proposal has been packaged as a “governance alignment signal” and a “long-term commitment,” but strip away the packaging and what you have is one of the most absurd governance scams I have ever seen. Let me… https://t.co/sJhFMnLWsJ
— H.E. Justin Sun 👨🚀 🌞 (@justinsuntron) April 15, 2026
Controversial token lock plan sparks outrage
The proposal, published on the platform’s governance forum on Wednesday, outlines a revised vesting structure for early investors. Under the plan, tokenholders would face an additional two-year lock period, followed by a gradual release of tokens over another two years. However, the most contentious clause states that investors who reject the proposal risk having their tokens locked indefinitely.
This condition has triggered widespread criticism across the crypto community, with many labelling the move as coercive and unfair.
Meanwhile, in December 2025, Justin Sun locked 5.2 million WLFI governance tokens, valued at approximately $78 million, to bolster the protocol’s liquidity and decentralization efforts.
Top investors and industry voices push back
Among the loudest critics is crypto entrepreneur Justin Sun, one of WLFI’s advisers and its largest investor. Sun, who reportedly holds a 4% stake in the platform, described the proposal as “one of the most absurd governance scams” he has encountered.
He also raised concerns about being excluded from the voting process due to his tokens being frozen, claiming that several other major holders are in similar positions. Sun further accused the platform of exerting pressure on investors by tying voting decisions to token accessibility.
Other industry figures echoed similar concerns. Simon Dedic, founder of Moonrock Capital, argued that early investors who anticipated profits have effectively been “rugged,” suggesting the proposal allows the platform to extend its control over investor funds.
In response, WLFI spokesperson David Wachsman stated that the proposal aims to align long-term interests within the ecosystem. Despite the defence, skepticism remains high as voting is expected to begin soon and last for a week.
Meanwhile, WLFI’s token price has remained stagnant at around $0.08 in the past 24 hours but has dropped over 40% this year and more than 75% from its all-time high of $0.33 recorded at launch.
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