World Liberty Financial posted a governance proposal to force a mandatory four-year token lock, followed by staggered releases over two years, and a clause that would keep tokens locked indefinitely for holders who vote against or refuse the terms. The proposal—described as Trump family-backed—drew heavy opposition led by major investor Justin Sun, who called it a “governance scam” and said his holdings are blocked from voting. Critics warned early supporters are being “rugged.” The WLFI token has fallen over 75% from its September high to about $0.08. The dispute coincides with scrutiny after World Liberty deposited 5 billion WLFI as collateral for a $75 million stablecoin loan on the Dolomite lending protocol, pushing that pool to nearly 100% utilization and trapping other depositors.

Proposal mandates a four-year lock with staggered releases and an indefinite-lock penalty for dissent; major investor Justin Sun publicly opposed it and reported blocked voting; WLFI price is down >75% to ~$0.08; 5 billion WLFI were posted as collateral for a $75M stablecoin loan on Dolomite, driving that pool to nearly 100% utilization and trapping depositors.