A public feud between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI has escalated after Sun vehemently criticized a new governance proposal. Sun claimed that the proposal is designed to punish token holders who vote against it by locking their tokens indefinitely. He also alleged that he and other major holders have been excluded from the voting process, with tokens representing about 4% of the voting power under his control being frozen. The proposal in question aims to overhaul token lockups, affecting over 62 billion WLFI tokens with 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 gradual release over three years, and a 10% token burn. Sun argued that this proposal is not genuine governance but rather an exercise of power by a select few to further consolidate power and expropriate properties. The project, however, stated that the proposal is intended to align all participants in the WLFI ecosystem for the long term, ensuring optimal long-term participation and healthy market supply. This criticism is the latest in a series of disputes between Sun and WLFI, which have been escalating over the past few months, including accusations of user exploitation and legal threats.