WLFI submits a locked-escrow proposal; Sun Yuchen and Moonrock Capital’s founder publicly criticize

World Liberty Financial (WLFI) submitted a proposal to its governance forum on April 15 (Wednesday), seeking to lock WLFI tokens held by early investors for two years, followed by a staged release over the next two years. Holders who do not accept a new unlock plan will have the tokens “continue to be locked indefinitely,” prompting criticism from major investors including Justin Sun.

Key Proposal Terms: Lock-Up Duration and Indefinite Locking Mechanism

According to the proposal document submitted by World Liberty Financial to the governance forum on April 15, the token unlock arrangements for WLFI early investors are as follows:

Initial lock-up period: Two years

Staged release period: After the lock-up period ends, the tokens will be released in stages over two years; in total, tokens will be held for four years to complete the unlock

Refusing those who do not accept the new plan: Tokens will “continue to be locked indefinitely”

In a written statement submitted to Cointelegraph, a World Liberty Financial spokesperson, David Wachsman, said the proposal “is intended to further align all participants in the WLFI ecosystem to achieve long-term goals.” Wachsman said the proposal vote will begin soon, with a voting period of one week.

Major Voices of Criticism: Justin Sun and Moonrock Capital Founder

In a public post on X on April 15, Justin Sun said his 4% WLFI tokens have been frozen, causing him to be “forced to exit the voting process.” Sun noted that “holders with substantial voting power are in the same situation,” and criticized the proposal as involving “coercive” behavior.

Recently, Sun has made multiple public criticisms of World Liberty Financial, including objecting to another independent proposal and alleging that the platform has a control mechanism that puts wallets on a blacklist. World Liberty Financial denied the blacklist allegations.

Simon Dedic, founder of venture firm Moonrock Capital, also posted on X saying that WLFI early investors “originally thought they were sitting on handsome profits, but ended up suffering a crushing loss,” adding in the post: “This actually gives them a second chance to keep extracting the residual value they gained from all the bragging over the past two years.”

WLFI Token Market Data

According to market data, the WLFI token has held around $0.08 over the past 24 hours, with a drop of more than 40% since the start of the year. Since WLFI set an all-time high of $0.33 on September 1, 2025, its first day of public trading, the cumulative decline has been more than 75%. WLFI officially opened trading on September 1, 2025; prior to that, token holders’ votes decided to allow trading of a token that was originally not tradable.

Frequently Asked Questions

What are the specific terms of World Liberty Financial’s WLFI token lock-up proposal?

According to the proposal submitted by World Liberty Financial to the governance forum on April 15, early investor tokens will be locked for two years, followed by staged releases over the next two years. Holders who do not accept the new unlock plan will have the tokens locked indefinitely.

What did Justin Sun criticize about the WLFI lock-up proposal?

According to Justin Sun’s public post on X on April 15, his 4% WLFI tokens were frozen, forcing him to exit the voting process. He characterized the proposal as “one of the most absurd governance scams,” and criticized “coercive” behavior.

What is the WLFI token’s current market performance and historical high?

According to market data, the WLFI token has held around $0.08 over the past 24 hours, with a drop of more than 40% since the start of the year; compared with the historical high of $0.33 set on the first day of public trading on September 1, 2025, the cumulative decline has been more than 75%.