On Wednesday, World Liberty Financial published a governance proposal that would burn 4.5 billion WLFI tokens and restructure vesting for 62 billion “early supporters” including Justin Sun.
Tron founder Sun, who sank $75 million into the project plus nearly $150 million in commitments to other Trump-linked crypto projects, called the proposal “tyranny” and “coercion.”
Tokenholders who don’t accept the new terms could remain locked on the blockchain indefinitely.
A vote that punishes no votes
Sun posted his disagreement within hours of World Liberty’s proposal arguing that its design is a logical trap. Reject it and risk a permanent token freeze.
His own tokens, which he says represent roughly 4% of the project’s voting power, have remained frozen since September 2025. Because his tokens are frozen, Sun holds no ability to participate in the vote.
“This is not a governance vote,” Sun wrote. “This is a performance where the police have already barricaded the doors of parliament and only let their own people inside to raise their hands.”
Laura Shin wholeheartedly agreed with Sun. “I’ve seen a lot of crazy things in crypto, but this might be one of the nuttiest,” she said in reference to the proposal. “Like, truly, WTF.”
MyEtherWallet co-founder Taylor Monahan disagreed, noting the legal disclosures available to Sun when he initially bought WLFI tokens.
“Everyone bought these tokens literally accepting the fact that they would be locked till somebody decided on a future date that something else will be done to change the circumstances.”
Read more: Every token in World Liberty Financial’s portfolio is down bad
Sun invested $223M in Trump crypto ventures
The proposal added to the escalating social media battle between the Trump family and Sun.
On April 12, Sun demanded that the people behind the WLFI account identify themselves. He accused the team of implanting backdoor controls and freezing investor funds without disclosure.
Incredibly, his complaints arrived months after Sun had already committed $223 million into the Trump family’s crypto ventures and received a $10 million slap-on-the-wrist settlement of his ominous SEC lawsuit.
A lead developer from Yearn Finance published an analysis of WLFI’s smart contracts, highlighting a special vesting category for Sun individually. Sun’s special vesting category contrasts with 519 other investors sitting in an otherwise identical yet distinct smart contract category.
It also notes that one administrative wallet of World Liberty Financial can freeze any holder unilaterally.
That same wallet runs a stablecoin borrowing loop on Dolomite. The lending protocol’s co-founder, Corey Caplan, also serves as a WLFI technical adviser.
World Liberty deposited 5 billion WLFI tokens as collateral, representing the vast majority of all WLFI on Dolomite at the time, to borrow roughly $75 million in stablecoins.
After over $40 million of those proceeds moved to Coinbase Prime, World Liberty later repaid $25 million.
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Source: https://protos.com/justin-sun-goes-to-war-with-world-liberty-financial/
