A heated dispute has erupted between Justin Sun, founder of Tron, and the Trump-linked cryptocurrency project WLFI, after Sun publicly denounced a new governance proposal as a scam. According to Sun, the proposal would result in token lockups and exclusion from voting for those who dissent, while the project claims it aims to align all participants for the long-term. Sun alleged that he and other large token holders had been excluded from the voting process, with roughly 4% of the voting power under his control frozen. He also 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.
The proposal in question would introduce new terms for over 62 billion WLFI tokens, including multi-year lockups and vesting schedules. Token holders who do not accept the new terms would remain locked indefinitely. The backlash against the proposal has been intense, with Simon Dedic, founder of Moonrock Capital, accusing the project of 'rugging' early investors. A spokesperson for World Liberty Financial defended the proposal, stating that it was designed to 'further align all participants in the WLFI ecosystem for the long-run.' The dispute marks the latest escalation in the feud between Sun and WLFI, which has been building for months.
Earlier this week, WLFI threatened legal action against Sun, who had accused the project of exploiting users through DeFi transactions. The tensions between the two parties have been rising since September, when WLFI blacklisted a blockchain address linked to Sun, and have continued to intensify in recent weeks.