Tron founder Justin Sun has openly criticized the governance proposal put forth by Donald Trump-related project World Liberty Financial, calling it "one of the most absurd governance scams he has ever seen."
In a post on X, Sun stated that the proposal, described by WLFI as a "governance alignment signal" and a long-term commitment mechanism, actually punishes dissenters by indefinitely locking their tokens if they vote against it.
He pointed out that this structure turns the voting process into what he calls coercive behavior, where participants opposing the proposal face punitive consequences without any clear unlocking mechanism.
Justin Sun criticizes WLFI
"This is not a governance vote. This is a performance where the police have locked the doors of the parliament, only allowing their people to raise their hands inside. The voter pool has been cleansed. Only affirmative votes remain."
Concerns have also been raised about the control structure of WLFI's smart contracts, with the Tron founder noting that power is concentrated in a structure consisting of three anonymous multi-signature groups and a single anonymous guardian account, which can blacklist addresses. He emphasized that these unidentified participants can directly override governance results and execute changes at the contract level.
Sun believes that this concentration of control violates the principles of decentralized governance, while claiming that decision-making power is effectively concentrated in the hands of unidentified entities. He added that such a system "is a dictatorship masquerading as a DAO."
The governance proposal from World Liberty Financial outlines its impact on over 62 billion WLFI tokens. The proposal suggests that 45.23 billion tokens held will be subject to a two-year cliff period, followed by a three-year linear vesting arrangement, along with a 10% token burn, which could lead to the permanent destruction of up to 4.52 billion tokens.
For early supporters, 17.04 billion locked tokens will transition into a two-year cliff and two-year linear vesting without any burn, while holders who do not accept the new terms will remain indefinitely locked under existing conditions. WLFI states that the proposal aims to promote long-term governance participation and reduce circulating supply through token burns and extended lock-up periods.
His claims are based on on-chain analysis conducted by blockchain researcher banteg, who noted that WLFI's token contract has been updated over time to include blacklist features and other characteristics. These updates were made after Sun's investment, reportedly allowing certain addresses to restrict or reallocate tokens. One upgrade also introduced a mechanism described as "bulk reallocation," which WLFI claims is intended to recover funds lost due to fraud.