A public disagreement between Tron's Justin Sun and the Trump-affiliated cryptocurrency project WLFI intensified on Wednesday, as Sun harshly condemned a newly introduced 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 the vote to penalize dissenters, with token holders who oppose the proposal risking indefinite token lockups. He also asserted that he and other significant holders were excluded from the 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 lies with anonymous wallet addresses, including a multisignature setup that can override outcomes and a separate account with the power to blacklist users. The criticized proposal aims to overhaul token lockups across the ecosystem, subjecting over 62 billion WLFI tokens 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.
The backlash marks the latest episode in the deteriorating relationship between Sun and the project, with tensions escalating over the past months. Earlier, WLFI threatened legal action against Sun, who had accused the team of exploiting users through DeFi transactions. A spokesperson for World Liberty Financial stated that the proposal was designed to align all participants in the WLFI ecosystem for the long term, ensuring healthy market supply.