Trump-Backed WLFI Proposes Massive Token Burn Amid Justin Sun's ‘Backdoor’ Feud

• World Liberty Foundation proposed locking 63.28 billion tokens for at least two years through a new governance plan.
• Founder and team-held tokens would face a two-year cliff, followed by a three-year vesting schedule and a 10% burn of around 4.52 billion WLFI tokens.
• Around 17.04 billion early supporter tokens would be locked in for 2 years, followed by a 2-year vesting period, with no burn. 

Trump family-backed World Liberty Foundation (WLFI) announced on Wednesday a bold proposal to overhaul its token locks amid the swirling controversy with Tron (TRX) blockchain founder Justin Sun. 

The firm, which lists President Donald Trump as its co-founder emeritus, said on X it has posted a new governance proposal that will lock away 63.28 billion tokens for at least the next two years. 

If approved, the 45.24 billion WLFI tokens that are with the founder and founding team would be subject to a two-year "cliff", then a three-year gradual vesting. Around 10% of the tokens, up to 4.52 billion, will be burnt permanently – or permanently removed from the token supply. Around 17.04 billion early supporter tokens would be locked in for 2 years, followed by a 2-year vesting period, with no burn. 

WLFI’s token fell nearly 2% in the last 24 hours to around $0.08. Retail sentiment around the cryptocurrency on Stocktwits trended in ‘bullish’ territory over the past day, accompanied by ‘extremely high’ levels of chatter.

TRON Founder Justin Sun Raises Governance Concerns

The decision to lock away tokens and strengthen the supply chain follows Sun's accusation that the company treats the crypto community as its “personal ATM.” In a post on X, Sun said WLFI wallets were being frozen due to a “hidden backdoor” built into the WLFI token, undermining the decentralized ethos of the crypto community. 

In late 2025, WLFI’s anonymous team froze Sun’s wallet, which held roughly over 500 million WLFI tokens, after a small transfer of about 9 million WLFI. Sun alleged that the transfer was done without communication or due process. 

Earlier this week, Sun called on World Liberty Financial to disclose control of its governance keys, alleging that one wallet can unilaterally freeze user assets. He said on-chain data shows centralized control undermines claims of decentralization, with real authority concentrated in an anonymous address and a small multisig group.

“Who is that person? The community deserves an answer,” he wrote in a post on X. “If the WLFI team has nothing to hide, they should have no difficulty identifying who controls these keys.”

The WLFI token has fallen over 75% from its record high of $0.33 seen in September. Over the past year, the blockchain platform launched its in-house stablecoin USD One (USD1) and applied for a national bank charter. Retail sentiment around USD1 on Stocktwits trended in ‘neutral’ territory over the past day, accompanied by ‘extremely high’ levels of chatter. 

Read also: Bitcoin Dips To $74K After Trump Claims Iran War Is ‘Close To Over’ – But Analyst Eyes Rally To $88K

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