Justin Sun Blasts WLFI Governance Vote as Power Grab Locking Billions of Tokens

Justin Sun blasted WLFI's governance vote as an absurd power grab that punishes dissenting token holders with indefinite lockups.

“Justin Sun blasts Trump-linked WLFI's 'absurd' governance vote, escalating feud The Tron founder claimed that dissenters would face token lockups and exclusion from voting, while the project said the proposal aims to align all participants for the long-run”

@coindesk

Sun accused the project of engineering a vote that punishes opposition and excludes major holders.

@coindesk

The proposal would impose multi-year lockups on more than 62 billion WLFI tokens and burn up to 4.5 billion tokens.

WLFI said the proposal was designed to align all participants for the long-run.

The clash marks the latest breakdown after WLFI threatened legal action and blacklisted Sun's token stake.

WLFI's proposal would restructure 62.28 billion locked tokens under extended vesting schedules.

Those who don't accept the new terms stay locked indefinitely.

Bitcoin World

The plan includes a potential burn of up to 4.52 billion WLFI tokens.

The 62.28 billion tokens affected represent a substantial portion of WLFI's 100 billion total supply.

The proposal effectively kicks any meaningful supply increase down the road by at least two years.

Sun questioned WLFI's governance power structure and called it a dictatorship disguised as a DAO.

Sun's wallet was blacklisted following a roughly $9 million transaction.

76% of voting power was controlled by just 10 wallets.

The combination of governance concerns and leveraged collateral activity has increased scrutiny.

WLFI-linked wallets deployed large token holdings as collateral on Dolomite.