A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to Trump, has escalated after Sun criticized a new governance proposal, labeling it as 'one of the most absurd governance scams' he has encountered. In a post, Sun accused the project of designing a vote that penalizes dissenters, with token holders who vote against the proposal facing indefinite token lockups. He also alleged that he and other large holders were excluded from the process, claiming that tokens representing around 4% of the voting power under his control had been frozen. Sun questioned the authority 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 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 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.
Simon Dedic, founder of Moonrock Capital, also criticized the move, stating that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial said the proposal was designed to align participants in the WLFI ecosystem for the long term, ensuring healthy market supply. The backlash marks the latest episode in the deteriorating relationship between Sun and the project, which has been building for months.