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 Trump, has escalated after Sun condemned a new governance proposal as 'one of the most absurd governance scams' he has seen. In a post, Sun alleged that the proposal is designed to punish token holders who vote against it by locking their tokens indefinitely. He also claimed that he and other large holders have been excluded from the voting process, with tokens worth around 4% of the voting power under his control being frozen. Sun questioned the authority of the vote, stating that control over the protocol lies with anonymous wallet addresses. The proposal in question would overhaul token lockups across the WLFI ecosystem, with over 62 billion tokens subject to new terms, including multi-year lockups and vesting schedules. Token holders who do not accept the new terms would remain locked indefinitely. The criticism has been echoed by other investors, including Simon Dedic, founder of Moonrock Capital, who accused the project of 'rugging' early investors. A spokesperson for World Liberty Financial defended the proposal, stating that it aims to align participants for the long term and ensure healthy market supply. The dispute marks the latest episode in the deteriorating relationship between Sun and WLFI, with tensions building over the past months.