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

A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun publicly criticized a new governance proposal. 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 dissent by locking their tokens indefinitely. He also claimed that he and other major holders have been excluded from the voting process, with approximately 4% of the voting power under his control being frozen. Furthermore, Sun questioned the legitimacy of the vote, suggesting that control of 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 would introduce new token lockup terms across the ecosystem, affecting over 62 billion WLFI tokens. Token holders who do not accept the new terms would remain locked out indefinitely. The plan includes multi-year lockups and vesting schedules for insiders, such as team members and advisors, as well as a 10% token burn for those who opt in. Up to 4.5 billion tokens could be permanently destroyed under this plan. Simon Dedic, founder of Moonrock Capital, also expressed criticism, 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, ensuring healthy market supply. This latest development marks an escalation in the feud between Sun and WLFI, which has been building for months. The dispute began when WLFI blacklisted a blockchain address linked to Sun, which held approximately $107 million worth of governance tokens. Tensions increased after WLFI deposited its tokens into a lending protocol and borrowed stablecoins, leading to a significant drop in token value. Sun accused the project of treating users as 'personal ATMs,' prompting WLFI to threaten legal action.