A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has escalated after Sun condemned the project's latest governance proposal. In a post, Sun described the proposal as 'one of the most absurd governance scams' he has encountered, alleging that it is designed to punish token holders who vote against it by locking their tokens indefinitely. Sun also claimed that he and other significant holders had been excluded from the voting process, with tokens worth around 4% of the voting power under his control being frozen.
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. Insiders, such as team members and advisors, would face a two-year lockup, followed by a three-year gradual release, and a 10% token burn upon opting in.
Sun is not alone in his criticism, with Simon Dedic, founder of Moonrock Capital, describing the move as 'rugging' early investors. A spokesperson for World Liberty Financial defended the proposal, stating it was designed to 'further align all participants in the WLFI ecosystem for the long-run.' The dispute marks the latest episode in the deteriorating relationship between Sun and WLFI, which has been building for months.
The two parties have previously clashed over allegations of user exploitation through DeFi transactions, with WLFI threatening legal action against Sun. The feud has its roots in September, when WLFI blacklisted a blockchain address linked to Sun, and has intensified in recent weeks, with tensions running high between the two parties.