Tron founder Justin Sun has publicly criticized the governance proposal from the Donald Trump-linked project World Liberty Financial. He labeled it an “absurd governance scam” and “a dictatorship wearing the mask of a DAO.” Sun alleges the proposal unfairly penalizes dissenting voters by locking their tokens indefinitely and that key stakeholders, including himself, have been prevented from voting. He also raised concerns about anonymous groups having control over the project’s smart contracts.
Justin Sun has publicly condemned a governance proposal from World Liberty Financial, calling it “one of the most absurd governance scams” he has ever seen. He stated the proposal penalizes dissenting voters by locking their tokens indefinitely without a defined unlock mechanism.
Sun claimed his tokens, representing about 4% of voting power, have been frozen alongside other significant holders. He argued this pre-determines the vote’s outcome by restricting participation to those approved by the project team.
“This is not a governance vote. This is a performance where the police have already barricaded the doors of parliament and only let their own people inside to raise their hands,” Sun stated. He added that the voter pool has been purged, leaving only yes votes.
Concerns were also raised about the control structure of WLFI’s smart contracts residing with a 3-of-5 anonymous multisignature group. Sun stressed these unidentified actors can override governance outcomes and execute changes directly at the contract level.
This concentration of control contradicts decentralized governance principles, according to Sun. He asserted the system is “a dictatorship wearing the mask of a DAO.”
The governance proposal outlines changes affecting over 62 billion WLFI tokens. It includes a two-year cliff and three-year linear vesting for certain tokens, alongside a potential 10% token burn.
Sun’s recent comments follow earlier accusations about hidden control mechanisms within WLFI’s system. He had previously flagged issues around an anonymous wallet and a small signer group with power to freeze user funds.
His claims are based on on-chain analysis which found WLFI’s token contracts were updated to include a blacklist function. These updates reportedly allow certain addresses to restrict or reallocate tokens, features Sun said he was not informed about as the project’s largest backer with a $75 million investment.
