A public row between Justin Sun, founder of Tron, and WLFI, a crypto project linked to Trump, escalated on Wednesday after Sun strongly 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 dissenters, with token holders who oppose the proposal risking indefinite token lockups. He also claimed that he and other major holders were excluded from the process, stating that tokens representing about 4% of the voting power under his control had been frozen. Sun questioned the vote's authority, suggesting that control over the protocol rests with anonymous wallet addresses, including a multisignature setup that can override outcomes and a separate account with the power to blacklist users.
The criticism focuses on WLFI's proposal 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 and advisors, would face a two-year lockup, followed by a three-year gradual release, and a 10% token burn upon opting in. Holders who do not accept the new terms would remain locked indefinitely.
Sun was not alone in his criticism, as Simon Dedic, founder of Moonrock Capital, stated that early investors had been 'rugged' by the Trump family. A World Liberty Financial spokesperson said 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 breakdown of relations between Sun and the project, with tensions building over the past few months. Earlier this week, WLFI threatened legal action against Sun, who had accused the team of exploiting users through DeFi transactions.
The dispute has been escalating since September, when WLFI blacklisted a blockchain address linked to Sun, and intensified after WLFI deposited its tokens into a lending protocol and borrowed stablecoins, triggering a price drop and public accusations from Sun.