A highly publicized dispute between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI has escalated, with Sun condemning a recent governance proposal as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun accused WLFI of devising a voting system that penalizes token holders who oppose the proposal, potentially resulting in indefinite token lockups. He also alleged that he and other significant holders were barred from participating in the process, claiming that tokens representing approximately 4% of the voting power under his control had been frozen.
Sun questioned the legitimacy of the vote, suggesting that control over the protocol lies with anonymous wallet addresses, including a multisignature setup capable of overriding outcomes and a separate account with the power to blacklist users. The criticized proposal aims to overhaul token lockups across the WLFI ecosystem, affecting over 62 billion tokens with new terms including multi-year lockups and vesting schedules. Insiders, such as team members and advisors, would face a two-year lockup followed by a three-year gradual release, alongside a 10% token burn upon opting in. Holders who decline the new terms would remain locked indefinitely.
The backlash marks the latest episode in the deteriorating relationship between Sun and the project, with tensions escalating over the past months, including a previous incident where WLFI blacklisted a blockchain address linked to Sun holding approximately $107 million worth of governance tokens.