A heated dispute between Justin Sun, the founder of Tron, and WLFI, a crypto project linked to the Trump family, has escalated after Sun condemned a new governance proposal. Sun claims the proposal is designed to penalize token holders who vote against it, with the risk of having their tokens locked indefinitely.
He also asserts 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 would introduce new token lockup terms across the WLFI ecosystem, affecting over 62 billion tokens.
Token holders who do not accept these terms would remain locked out indefinitely. The plan includes multi-year lockups, vesting schedules, and a token burn mechanism.
Sun argues that this proposal is not a genuine governance effort but rather an attempt by a select group to consolidate power and expropriate properties. His criticism is supported by other figures, such as Simon Dedic, founder of Moonrock Capital, who believes early investors have been unfairly treated. In response, a spokesperson for World Liberty Financial stated that the proposal is intended to align all participants in the WLFI ecosystem for the long term, ensuring healthy market supply.
This dispute is the latest in a series of escalating tensions between Sun and WLFI, which have been building over months, including previous accusations of user exploitation and legal threats.