A heated public dispute between Justin Sun, founder of Tron, and WLFI, a cryptocurrency project linked to the Trump family, has intensified after Sun condemned a recent governance proposal as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun alleged that the proposal is designed to penalize token holders who vote against it by locking up their tokens indefinitely.
He also claimed that he and other significant token holders have been barred from participating in the voting process, with roughly 4% of the voting power under his control being frozen. Sun 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 capable of blacklisting users. The proposal in question aims to overhaul token lockups across the WLFI ecosystem, affecting over 62 billion tokens with new terms including multi-year lockups and vesting schedules.
Token holders who decline to accept the new terms would have their tokens locked indefinitely, according to the proposal. Sun's criticism was echoed by Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the move.
A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align participants in the WLFI ecosystem for the long term and ensure a healthy market supply. The backlash marks the latest development in the escalating feud between Sun and WLFI, which has been building for months and includes previous threats of legal action and accusations of exploiting users through DeFi transactions.