Justin Sun Calls WLFI's 'Alignment' Proposal 'One of the Most Absurd Governance Scams'—Here's the Tea

Justin Sun is not having it.

The Tron founder fired shots at World Liberty Financial Wednesday, accusing the Trump-linked project of engineering an "absurd" governance proposal that punishes dissenting token holders with indefinite lockups. Apparently, WLFI's vision of decentralization involves a very selective guest list where dissent gets you locked in the digital basement forever.

The disputed plan would impose multi-year lockups and vesting on more than 62 billion WLFI tokens, burn up to 4.5 billion tokens, and give insiders strict new release schedules while allowing controlling wallets to override votes and blacklist users. Think of it as a corporate retreat where the organizers already decided what team-building activity you're doing, and yes, it's trust falls—but from a very high ledge.

"This proposal is not governance," Sun posted on X. "It is an exercise of power by the selected few who are carefully engineering a further power consolidation and property expropriation operation." Somewhere, Satoshi is probably spinning in his anonymous grave, wondering where it all went wrong.

Sun claims token holders who vote against the proposal risk having their tokens locked indefinitely. He also alleges tokens tied to roughly 4% of voting power under his control have been frozen, and that he and other large holders were excluded from the process entirely. It's like being uninvited to your own birthday party, then told your gifts are being held hostage until you stop complaining about the guest list.

More broadly, Sun questioned whether the vote holds real authority, pointing to anonymous wallet addresses with control over the protocol—including a multisignature setup that can override outcomes and a separate account with the power to blacklist users. Nothing screams decentralized governance like mysterious overlords with kill switches and a blacklist ready to go. Very Web3.

Simon Dedic, founder of Moonrock Capital, piled on. "All the $WLFI early investors who thought they were sitting on solid profits just got rugged, by the Trump family themselves," he wrote on X, calling the move "blatant misconduct" with little effort to conceal it. Turns out "DYOR" warnings are less helpful when the rug pull comes with a presidential seal.

A WLFI spokesperson defended the proposal as designed to "align all the participants in the WLFI ecosystem for the long-run" and to "optimally ensure long-term participation." "Alignment" in crypto terms apparently means being stuck in a room with your tokens doing nothing while someone else handles the remote.

This marks the latest chapter in the deteriorating relationship between Sun and WLFI. Earlier this week, WLFI threatened legal action after Sun accused the team of exploiting users through DeFi transactions,