Justin Sun Slams WLFI's Governance Proposal as 'Absurd', Escalating Public Feud

A heated public dispute between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun vehemently denounced the project's latest governance proposal. Sun took to social media to express his strong opposition to the proposal, labeling it as 'one of the most absurd governance scams' he has encountered. He alleged that the proposal is designed to penalize token holders who vote against it, with their tokens facing indefinite lockups. Furthermore, Sun claimed that he and other significant token holders have been excluded from the voting process, with around 4% of the voting power under his control being frozen. Sun questioned the legitimacy of the vote, suggesting that control of the protocol rests with anonymous wallet addresses, including a multisignature setup that can override voting outcomes and a separate account with the power to blacklist users. The WLFI proposal in question aims to overhaul token lockups across the ecosystem, with over 62 billion tokens subject to new terms, including multi-year lockups and vesting schedules. Insiders, such as team members and advisors, would face a two-year lockup, followed by a three-year gradual release, along with a 10% token burn upon opting in. Token holders who decline to accept the new terms would remain locked indefinitely. Simon Dedic, founder of Moonrock Capital, also voiced his opposition, stating that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial defended the proposal, stating that it was designed to align all participants in the WLFI 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 the project, with tensions escalating over the past few months.