Justin Sun Criticizes WLFI's Governance Proposal as 'Absurd Scam'

A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to Donald Trump, has escalated after Sun criticized a new governance proposal. Sun accused WLFI of designing a vote that punishes token holders who dissent, with those voting against the proposal facing indefinite token lockups. He also claimed that he and other large holders had been excluded from the process, with tokens worth around 4% of the voting power under his control being frozen. The proposal in question aims to overhaul token lockups across the WLFI ecosystem, with over 62 billion tokens subject to new terms, including multi-year lockups and vesting schedules. Insiders, such as team members and partners, would face a two-year lockup, followed by a three-year gradual release, and a 10% token burn upon opting in. Sun argued that the proposal is not a genuine governance effort, but rather an attempt by a select few to consolidate power and expropriate property. WLFI, on the other hand, claims that the proposal is designed to align all participants in the ecosystem for the long term, ensuring optimal long-term participation and a healthy market supply. The backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, with tensions building over the past few months. The dispute began when WLFI blacklisted a blockchain address linked to Sun, and intensified after the project deposited its own tokens into a lending protocol and borrowed stablecoins, causing the token price to plummet. Sun has since accused the project of treating users as 'personal ATMs,' prompting WLFI to threaten legal action.