Justin Sun Calls WLFI Vote ‘Coercion,’ Not Governance, Alleges Power Grab Over Billions of Dollars

Tron founder Justin Sun blasted a WLFI governance vote, calling it "fake governance" built on coercion and concentrated power.

Writing on X on June 15, Sun said "this is not 'World Liberty Financial' but 'global tyranny.'" He said the proposal was framed as governance alignment and a long-term commitment, but in reality was "one of the most absurd governance scams" he had ever seen.

Sun's first objection was to a provision under which tokens would be locked up indefinitely if holders vote against the proposal. "A structure that punishes opposition is not voting — it is coercion," he wrote. "A system that rewards approval and penalizes dissent is not a democratic process."

He also said major token holders, including himself, were excluded from the vote. Sun said he holds about 4% of the voting power, but cannot participate because his tokens are frozen. Many other large holders are in the same position, he added, while the team decides who is allowed to vote. In his view, the outcome was determined before the vote even began.

Sun also questioned the governance power structure. He alleged that effective control of the WLFI smart contract sits with an anonymous 3-of-5 multisig, while a separate anonymous account can blacklist specific addresses. "Anonymous actors hold all the power, and the on-chain vote is merely a formality," he wrote.

He also criticized what he described as an asymmetry in identity disclosure. Voters are required to complete identity verification and provide electronic signatures, while the entities with actual control remain completely anonymous. That is not decentralization, he wrote, but "a dictatorship disguised as a DAO."

Sun said the proposal is particularly problematic because it covers the unlocking schedule for assets worth billions of dollars, governance reallocation and token burns. Deciding the fate of billions of dollars in assets in an environment where dissent is punished, major holders are excluded and anonymous actors are in control has no legitimacy, he said.

He added that such a structure would not be tolerated in a country governed by the rule of law. Sun urged all WLFI holders to recognize the nature of the proposal and publicly oppose it.