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

A heated public dispute has erupted between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI, with Sun strongly condemning a newly proposed governance overhaul as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun alleged that the proposal is designed to penalize those who vote against it, with token holders facing potential indefinite lockups. Additionally, he claimed that he and other major holders have been excluded from the process, stating that tokens representing approximately 4% of the voting power under his control have been frozen. Sun questioned the legitimacy of the vote, suggesting that true control over the protocol lies with anonymous wallet addresses, including a multisignature setup capable of overriding outcomes and a separate account with the power to blacklist users. The WLFI proposal aims to restructure token lockups across the ecosystem, affecting over 62 billion tokens with 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 gradual release, alongside a 10% token burn. Holders who decline the new terms would remain locked indefinitely. The criticism has been echoed by other figures, including Simon Dedic, founder of Moonrock Capital, who stated that early investors have been 'rugged' by the proposal. A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align participants in the ecosystem for the long term. The backlash marks the latest escalation in the feud between Sun and WLFI, which has been building for months and includes previous threats of legal action and a sharp reversal in their relationship.