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

A public feud between Justin Sun, founder of Tron, and the Trump-linked cryptocurrency project WLFI escalated on Wednesday, as Sun denounced a new governance proposal as 'one of the most absurd governance scams' he has encountered. In a post on X, Sun alleged that the proposal is designed to punish token holders who vote against it, with those who dissent facing the risk of having their tokens locked indefinitely. He also claimed that he and other major holders had been excluded from the process, stating that tokens representing around 4% of the voting power under his control had been 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 overhaul token lockups across the WLFI ecosystem, affecting over 62 billion tokens. Tokens held by insiders would be subject to a two-year lockup, followed by a three-year gradual release, and a 10% token burn upon opting in. Holders who do not accept the new terms would remain locked indefinitely. Sun's criticism was echoed by Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the proposal. A spokesperson for World Liberty Financial defended the proposal, saying it was designed to 'further align all participants in the WLFI ecosystem for the long-run' 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.