A public feud between Justin Sun, founder of Tron, and WLFI, a Trump-linked cryptocurrency project, intensified on Wednesday when Sun condemned a new governance proposal as 'one of the most absurd governance scams' he has encountered. In a lengthy post, Sun accused WLFI of designing a vote that penalizes token holders who oppose the proposal, risking indefinite token lockups. He also claimed that he and other major holders had been excluded from the voting process, with approximately 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 with the power to blacklist users.
The controversy surrounds WLFI's proposal to overhaul token lockups, affecting over 62 billion tokens with new terms, including multi-year lockups and vesting schedules. Insiders, such as team members and partners, would face a two-year lockup, followed by a three-year gradual release, and a 10% token burn. Holders who reject the new terms would remain locked indefinitely. Simon Dedic, founder of Moonrock Capital, also criticized the proposal, stating that early investors had been 'rugged' by the Trump family.
A World Liberty Financial spokesperson defended the proposal, saying it was designed to align participants in the WLFI ecosystem for the long term, ensuring healthy market supply. The backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, which has been escalating for months.