In a recent social media post, Justin Sun accused the Trump-backed World Liberty Financial (WLFI) governance of being 'world tyranny,' arguing that the newly proposed staking scheme uses token locking mechanisms to strip opponents of their voting rights and concentrate control in the hands of anonymous individuals. This statement marks an escalation in his dispute with the Trump-associated decentralized finance (DeFi News) project, as WLFI's trading price hovers around $0.08, down over 70% from previous highs.
On April 15, Tron founder Justin Sun launched a fierce attack on WLFI's latest governance proposal on the X platform, calling it 'world tyranny, not world liberty financial,' and labeling it 'one of the most absurd governance scams I have ever seen.' As an early major supporter of the project, Sun warned that this vote could determine the 'fate of billions of dollars in assets' and constitutes a 'blatant deprivation of property rights' for holders.
WLFI's tokens were promoted as part of Trump's push for cryptocurrency, but the project has faced criticism for requiring investors to stake unlocked tokens for 180 days to retain governance rights. A proposal from March linked voting rights to long-term staking and introduced node levels requiring millions of WLFI staked, with critics pointing out that this design further entrenches the position of insiders and early investors.
According to previous reports, WLFI's governance has shown signs of extreme centralization, with a recent staking system vote receiving 99.12% approval, while 76% of the voting tokens came from just 10 wallets, giving a few holders actual control over the outcome. Other analyses and WLFI's documentation indicate that about 80% of the presale tokens remain locked under the terms of future governance proposals, further amplifying the impact of changes to the unlocking timeline and burn mechanisms.
In his post, Sun claimed that 'the actual control of the WLFI smart contract is held by an anonymous multi-signature with a 3/5 majority,' and that an unnamed guardian wallet can blacklist addresses, meaning 'governance proposals, on-chain voting, and community discussions are all a drama.' He further criticized WLFI for requiring voters to undergo identity verification and compliance checks, while 'those with absolute power remain anonymous,' calling this setup 'worse than tyranny' and a 'dictatorship masquerading as a DAO.'
WLFI's tokens have plummeted over 70% since their peak, currently trading at around $0.08, with a market cap of approximately $2.5 billion and a 24-hour trading volume nearing $80 million. The project raised over $460 million in its early stages, and Sun indicated that the stakes in the current vote involve governance unlocking timelines, governance rights, and potential governance changes.