Trouble is growing inside World Liberty Financial as investors push back against a new plan that could lock up their tokens for years.
The proposal is simple—but controversial.
It would force investors to keep their tokens locked for another four years. First, an extra two-year lock-up, then a slow release over the next two years. But the part that’s causing outrage is this: if investors reject the plan, their tokens could be locked indefinitely.
That’s where things start to look messy.
Justin Sun, one of the project’s biggest investors, has strongly criticized the move. He called it a “governance scam” and said it feels like coercion—basically forcing investors to agree or face being locked out forever.
Even more concerning, he claims his own tokens are currently frozen, meaning he can’t even vote on the proposal that affects his investment.
Other voices in the crypto space are raising similar concerns. Simon Dedic said early investors are being misled, expecting liquidity but instead getting stuck in a long lock-up.
At the same time, the project’s token hasn’t been doing well.
The WLFI token is sitting around $0.08 and has dropped more than 75% from its peak. That weak performance is adding more pressure to an already tense situation.
There are also concerns beyond governance.
The project reportedly used billions of its own tokens as collateral to borrow tens of millions in stablecoins on a lending platform. That move pushed the system close to its limits and left other users struggling to withdraw their funds due to low liquidity.
Put it all together, and the situation looks risky.
Investors are worried about losing control over their funds, being forced into decisions, and dealing with a system that may not be as fair or transparent as expected.
Right now, the project is at a critical point.
If the team can’t rebuild trust, this backlash could turn into a much bigger problem.
