World Liberty Financial Faces Backlash Over Proposed Token Lock-Up

World Liberty Financial, the cryptocurrency venture associated with the Trump family, is embroiled in a dispute with its early backers over a controversial token unlock schedule. A new proposal submitted to the platform's governance forum suggests that early investors' WLFI tokens be locked for an additional two years, followed by a staggered release over the subsequent two years. The proposal includes a punitive clause stating that tokenholders who reject the new schedule will see their assets locked indefinitely. This move has sparked immediate condemnation from high-profile figures in the space, most notably Justin Sun. Sun, an advisor and one of the platform's largest investors with a 4% stake, described the plan as one of the most 'absurd governance scams' he has encountered, accusing the platform of coercion. Other critics, including Moonrock Capital founder Simon Dedic, suggested that early investors have been 'rugged,' implying a deceptive move to maintain control over the assets. Dedic noted that the timing of the lock-up aligns with the remainder of Donald Trump's term. In response, World Liberty Financial spokesman David Wachsman stated that the proposal is intended to align participants within the ecosystem for long-term growth. Voting on the measure is expected to begin shortly and will last for one week. The market reaction has been muted in the short term, with WLFI trading flat at 8 cents over the last 24 hours. However, the token has struggled significantly this year, declining more than 40% YTD and falling over 75% from its all-time high of 33 cents recorded on September 1.