A public spat between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI escalated on Wednesday, with Sun lambasting a new governance proposal as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun accused the project of devising a vote that penalizes token holders who oppose the proposal, with those who vote against it risking indefinite token lockups. Additionally, Sun alleged that he and other major token holders had been excluded from the decision-making process, claiming that tokens amounting to around 4% of the voting power under his control had been frozen. Sun also questioned the legitimacy of the vote, suggesting that control of 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 controversy revolves around WLFI's proposal to overhaul token lockups, which would impact over 62 billion tokens, introducing multi-year lockups and vesting schedules. Token holders who do not accept the new terms would remain locked indefinitely. The proposal has drawn criticism from other figures, including Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the Trump family.
A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align participants for the long term and ensure healthy market supply. The backlash marks the latest development in the deteriorating relationship between Sun and the project, which has been escalating over the past few months.