Justin Sun Criticizes WLFI's Governance Proposal as 'Absurd', Escalating Dispute

A highly publicized dispute between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun strongly condemned a new governance proposal. Sun described the proposal as 'one of the most absurd governance scams' he has encountered, alleging it is designed to penalize token holders who vote against it by locking their tokens indefinitely. He also claimed that he and other large token holders have been excluded from the voting process, with around 4% of the voting power under his control being frozen. Sun questioned the legitimacy of the vote, suggesting that control of the protocol lies with anonymous wallet addresses, including a multisignature setup that can override outcomes and a separate account with the power to blacklist users. The proposal in question would introduce new token lockup terms across the ecosystem, affecting over 62 billion WLFI tokens, with insiders facing a two-year lockup followed by a three-year gradual release and a 10% token burn. Early supporters would have slightly shorter vesting terms but no burn, with up to 4.5 billion tokens potentially being destroyed. Token holders who reject the new terms would remain locked indefinitely. Simon Dedic, founder of Moonrock Capital, also pushed back against the proposal, stating that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial defended the proposal, saying it was designed to align participants in the ecosystem for the long term and ensure a healthy market supply. The backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, which has been escalating over the past few months. The dispute began when WLFI blacklisted a blockchain address linked to Sun and has since intensified, with both parties exchanging accusations and threats of legal action.