A very public disagreement between Tron's Justin Sun and the Trump-affiliated cryptocurrency project WLFI intensified on Wednesday, as Sun strongly denounced a newly introduced governance proposal. Sun characterized the proposal as 'one of the most absurd governance scams' he has encountered, claiming it punishes those who vote against it by locking their tokens indefinitely.
He also alleged that he, along with other significant token holders, had been excluded from the voting process, with approximately 4% of the voting power under his control being frozen. Furthermore, Sun questioned the legitimacy of the vote, suggesting that true control over the protocol rests with anonymous wallet addresses, including a multisignature setup capable of overriding outcomes and a separate account with the power to blacklist users.
The WLFI proposal in question seeks to overhaul token lockups across the ecosystem, affecting over 62 billion WLFI tokens with new terms including multi-year lockups and vesting schedules. Token holders who do not accept these new terms would remain locked out indefinitely, according to the proposal. Sun's criticism was not isolated, as Simon Dedic, founder of Moonrock Capital, also voiced his disapproval, stating that early investors had been 'rugged' by the move.
A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align all participants in the WLFI ecosystem for the long term, ensuring optimal long-term participation and a healthy market supply. This backlash marks the latest development in the deteriorating relationship between Sun and the project, which has been escalating over the past few months.