- World Liberty Financial proposed burning 4.5 billion WLFI tokens and restructuring vesting for 62 billion controlled by early supporters.
- Tron founder Justin Sun attacked the plan as “tyranny” because rejecting it could permanently freeze a holder’s tokens, and his own frozen tokens prevent him from voting.
- The controversy follows Sun’s $223 million investment into Trump-linked crypto ventures, including a $75 million stake in WLFI.
On Wednesday, World Liberty Financial published a governance proposal to burn billions of its tokens and restructure vesting for early backers like Justin Sun. However, the Tron founder called the plan “tyranny” and “coercion” because it threatens permanent lockups for dissenters.
Sun argued the vote was undemocratic, writing it was “a performance where the police have already barricaded the doors.” Consequently, his own tokens, representing 4% of voting power, have been frozen since September 2025, barring his participation. Journalist Laura Shin said on social media this was one of the “nuttiest” things she had seen in crypto.
Meanwhile, an analysis by a Yearn Finance developer highlighted a special vesting category for Sun and noted a single admin wallet could freeze any holder. This follows a social media battle where Sun demanded the WLFI team identify themselves months after his massive financial commitment.
Sun had already committed $223 million to Trump family crypto ventures and received a $10 million SEC lawsuit settlement. Separately, the same administrative wallet used WLFI tokens as collateral to borrow roughly $75 million in stablecoins on Dolomite, a protocol whose co-founder also advises WLFI.
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