A highly publicized dispute between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI has escalated, with Sun strongly condemning a newly proposed governance structure as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun accused the project of devising a voting system that penalizes token holders who oppose the proposal, potentially resulting in the indefinite lockup of their tokens. Additionally, Sun alleged that he and other significant holders had been barred from participating in the voting process, claiming 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 rests with anonymous wallet addresses, including a multisignature setup capable of overriding outcomes and a separate account with the authority to blacklist users. The proposal in question seeks 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 partners, would face a two-year lockup followed by a three-year gradual release, alongside a 10% token burn upon opting in.
Token holders who decline 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 move.
A spokesperson for World Liberty Financial defended the proposal, stating that it was designed to align all participants in the WLFI ecosystem for long-term success and ensure a healthy market supply. The backlash marks the latest development in the deteriorating relationship between Sun and the project, which has been building for months and includes previous accusations of user exploitation and threats of legal action.