A public dispute between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI escalated on Wednesday, as Sun sharply denounced 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 proposal is designed to penalize those who vote against it, with token holders facing the risk of having their tokens locked indefinitely.
Furthermore, he claimed that he and other significant holders had been excluded from the voting process, stating that tokens representing approximately 4% of the voting power under his control had been frozen. Sun also questioned the legitimacy of the vote, 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 proposal in question aims to overhaul token lockups across the WLFI ecosystem, with over 62 billion 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. Sun's criticism was echoed by Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the proposal. In response, a World Liberty Financial spokesperson asserted that the proposal was designed to 'align all participants in the WLFI ecosystem for the long-run', ensuring 'long-term participation in our ecosystem and healthy market supply'. The backlash marks the latest episode in the deteriorating relationship between Sun and the project, which has been escalating over the past few months.