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

A public feud between Justin Sun, founder of Tron, and WLFI, a Trump-linked cryptocurrency project, intensified after Sun denounced a new governance proposal as 'one of the most absurd governance scams' he has encountered. In a post, Sun accused WLFI of devising a vote that penalizes those who dissent, with token holders who oppose the proposal facing the risk of having their tokens locked indefinitely. He also alleged that he and other significant holders had been excluded from the voting process, claiming that tokens equivalent to approximately 4% of the voting power under his control had been frozen. Sun questioned the legitimacy of the vote, suggesting that control over the protocol rests 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 reform 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 refuse to accept the new terms would remain locked indefinitely. The backlash against the proposal has been severe, with Simon Dedic, founder of Moonrock Capital, stating that early investors had been 'rugged' by the Trump family themselves. A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align all participants in the WLFI ecosystem for the long term. The dispute marks the latest escalation in the deteriorating relationship between Sun and WLFI, which has been building for months.