WLFI’s token lockup plan sparks feud and backlash

WLFI proposes stricter token lockups and a 10% burn for insiders after backlash and a feud with Justin Sun, who claims dissenters are punished and excluded from voting.

World Liberty Financial (WLFI), a DeFi project linked to the Trump family, has unveiled a major governance proposal to address concerns over insider token holdings and investor backlash. The plan targets over 62 billion WLFI tokens held by insiders and early supporters, introducing a two-year cliff and multi-year vesting schedules. Insiders must burn 10% of their tokens—potentially destroying up to 4.5 billion WLFI—while early supporters face a less strict vesting plan without a burn requirement. Tokens not included in the new terms will remain locked indefinitely. This proposal follows controversy over a $75 million loan and mounting criticism, and is presented by WLFI as a commitment to long-term governance alignment. However, major investor Justin Sun has publicly criticized the plan, claiming it punishes dissenters by locking their tokens and excluding them from voting. He also alleges his own tokens have been frozen. The dispute has escalated into a public feud, highlighting ongoing governance and control challenges within the WLFI project.