World Liberty Financial, a cryptocurrency project widely linked to Donald Trump, has come under fire from investors following a proposal to extend the lock-up period for early investors’ WLFI tokens to as much as four years. The suggested changes, which would affect over 17 billion tokens, have sparked a fierce backlash from stakeholders who feel blindsided by the move.
Sharp divide over token lock-up plan
The World Liberty Financial team unveiled a proposal that aims to replace the current indefinite lock-up on 62.2 billion WLFI tokens with a fixed vesting schedule. According to the plan, tokens held by the project’s founders, advisors, and partners would remain locked for two years. After that period, the tokens would be gradually released over a three-year span, during which 4.5 billion WLFI tokens are slated for burning.
For early backers, who collectively hold more than 17 billion WLFI tokens, the proposal would mean no access to their tokens for two years and a gradual release during the subsequent two years. In effect, early investors would have to wait a total of four years before their tokens would be fully available.
Approval of the proposal requires a quorum of 1 billion WLFI tokens to be represented and a simple majority to vote in favor. The voting process will last for seven days, and if passed, an additional ten-day approval period will follow.
Justin Sun calls proposal a “trap in disguise”
Justin Sun, founder of the Tron network and reportedly the largest individual WLFI investor, has been embroiled in a dispute with the World Liberty Financial team over its token freeze policies. After this latest proposal was made public, Sun took to social media to fiercely criticize the plan and its governance model.
Describing the measure as “fraud masquerading as governance,” Sun argued that while the proposal is presented as a democratic decision-making process, it punishes dissenters rather than rewarding those with differing views. He insisted the current vote amounts to exclusionary pressure rather than genuine collaboration.
Sun highlighted that only those supporting the proposal would have their WLFI tokens unlocked. In contrast, those opposing it or abstaining from the vote would see their tokens remain indefinitely locked. He also alleged that certain large investors were effectively sidelined from the vote by team decisions.
According to Sun, control of the project’s smart contract rests with an anonymous multi-signature wallet, giving a single account the ability to block specific WLFI holder addresses. As a result, on-chain votes and community debates, he argued, are little more than window dressing given this centralized control.
Backlash grows among investors
Justin Sun’s criticisms have resonated with many on social media, as investors chime in to express their frustration over World Liberty Financial’s handling of the matter. Several have described the process as lacking transparency and voiced that they feel coerced into accepting the new terms. Reports have even surfaced of some seeking to organize a class-action lawsuit against the project.
One social media user warned that the two-year lock would expire after Trump’s presidential term, potentially rendering WLFI worthless by then. Another pointed out that investors have already seen arbitrary token decisions for the past year, and now face a choice between waiting another four years or having their assets locked indefinitely.
Investor anxiety has also been fueled by previous actions: World Liberty Financial reportedly used 5 billion WLFI tokens as collateral on the Dolomite platform—linked to one of its advisors—to take out a $75 million stablecoin loan.
Despite mounting criticism, the project’s team has dismissed concerns as “baseless panic” and has so far issued no official statement. Whether they will respond to these latest allegations remains uncertain, as reported by The Block.
