Justin Sun Slams WLFI's 'Ridiculous' Governance Proposal, Fueling Ongoing Feud

A public spat between Tron founder Justin Sun and WLFI, a crypto project linked to Trump, escalated on Wednesday after Sun vehemently criticized a new governance proposal, labeling it as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun alleged that the project designed a vote that penalizes those who dissent, with token holders who vote against the proposal facing the risk of having their tokens locked indefinitely. He also claimed that he and other significant holders had been excluded from the process, stating that tokens representing 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 lies 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 seeks to overhaul token lockups across the ecosystem, with over 62 billion WLFI tokens subject to new terms, including multi-year lockups and vesting schedules. Insiders, such as team members, advisors, and partners, would face a two-year lockup followed by a three-year gradual release, alongside a 10% token burn upon opting in. Holders who do not accept the new terms would remain locked indefinitely. Sun's criticism was echoed by Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the proposal. A World Liberty Financial spokesperson countered that the proposal was designed to 'further align all participants in the WLFI ecosystem for the long-run,' aiming to 'optimally ensure long-term participation in our ecosystem and help 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.