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

A public dispute between Justin Sun, founder of Tron, and WLFI, a crypto project linked to Trump, has intensified after Sun condemned a new governance proposal as 'one of the most absurd governance scams' he has encountered. In a post on X, Sun accused the project of designing a vote that penalizes token holders who oppose the proposal, putting their tokens at risk of being locked indefinitely. He also alleged that he and other major holders had been excluded from the voting process, claiming that tokens representing approximately 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 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. Tokens held by insiders would face 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 align all participants in the WLFI ecosystem for the long term. The backlash marks the latest episode in the deteriorating relationship between Sun and the project, which has been escalating over the past few months.