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

A heated public dispute between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI escalated on Wednesday, following Sun's sharp criticism of a new governance proposal that he described as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun alleged that the proposal is designed to punish those who vote against it, with token holders 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 approximately 4% of the voting power under his control had been frozen. Furthermore, Sun questioned the legitimacy of the vote, suggesting that control over the protocol lies with anonymous wallet addresses, including a multisignature setup that can override outcomes and a separate account capable of blacklisting users. Sun argued that the proposal is not a genuine governance effort but rather an exercise of power by a select few who are attempting to consolidate their power and expropriate properties. 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 be locked for two years, followed by a three-year gradual release, and a 10% token burn upon opting in. Early supporters would face slightly shorter vesting terms but no burn, with up to 4.5 billion tokens potentially being permanently destroyed. Holders who do not accept the new terms would remain locked indefinitely. Simon Dedic, founder of Moonrock Capital, also pushed back against the proposal, stating that early investors had been 'rugged' by the Trump family. 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 and ensure healthy market supply. The backlash marks the latest episode in the deteriorating relationship between Sun and the project, which has been escalating over the past few months.