A public feud between Justin Sun, the founder of Tron, and WLFI, a Trump-linked cryptocurrency project, has escalated after Sun publicly denounced a new governance proposal as 'one of the most absurd governance scams' he has encountered. In a post on X, Sun accused WLFI of designing a voting system that penalizes token holders who vote against the proposal, with those who dissent facing the possibility of having their tokens locked indefinitely. Furthermore, Sun claimed that he and other major token holders had been excluded from the voting process, with tokens representing around 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 voting 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. 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 upon opting in.
Token holders who do not accept the new terms would remain locked indefinitely. The backlash against the proposal is not limited to Sun, with Simon Dedic, founder of Moonrock Capital, also speaking out against the plan, describing it as an attempt to 'rugged' early investors.
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 ensure 'healthy market supply'. The dispute marks the latest development in a feud between Sun and WLFI that has been building for months, with tensions escalating after WLFI blacklisted a blockchain address linked to Sun and Sun publicly accusing the project of exploiting users through DeFi transactions.