A public feud between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI has escalated after Sun denounced a recent governance proposal as 'one of the most absurd governance scams' he has encountered. In a post, Sun alleged that the proposal is designed to punish those who vote against it, with dissenting token holders facing the risk of having their tokens locked indefinitely. He also claimed that he and other significant holders have been excluded from the process, with tokens representing about 4% of the voting power under his control being frozen. Sun 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 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. Token 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 Trump family. A spokesperson for World Liberty Financial defended the proposal, stating that it was designed to align all participants in the WLFI ecosystem for the long term and ensure healthy market supply.
The backlash marks the latest episode in the deteriorating relationship between Sun and the project, which has been building for months.