A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun condemned a new governance proposal. Sun took to social media to express his strong disapproval of the proposal, labeling it 'one of the most absurd governance scams' he has encountered. He accused the project of designing a vote that penalizes token holders who oppose the proposal, putting their tokens at risk of being locked indefinitely. Furthermore, Sun alleged that he and other significant token holders had been excluded from the voting 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 of 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. He stated, 'This proposal is not governance, it is an exercise of power by a select few who are carefully engineering a further power consolidation and property expropriation operation.' The proposal in question aims to overhaul token lockups across the WLFI ecosystem, affecting over 62 billion tokens.
Under the plan, tokens held by insiders would be subject to a two-year lockup, followed by a three-year gradual release, and a 10% token burn upon opting in. Early supporters would face slightly shorter vesting terms but no burn, with up to 4.5 billion tokens potentially being permanently destroyed. Token holders who do not accept the new terms would remain locked indefinitely.
Simon Dedic, founder of Moonrock Capital, also voiced his opposition, stating 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 'further align all participants in the WLFI ecosystem for the long-run' and 'optimally ensure long-term participation in our ecosystem and help ensure healthy market supply.' The backlash marks the latest episode in the deteriorating relationship between Sun and the project, which has been escalating over the past few months.