A public disagreement between Justin Sun, the founder of Tron, and WLFI, a crypto project linked to Trump, has escalated after Sun strongly criticized a new governance proposal, labeling it as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun alleged that the project's voting system is designed to penalize dissenters, with token holders who oppose the proposal risking indefinite token lockups. Additionally, Sun claimed that he and other major holders were excluded from the voting process, stating 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 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 ecosystem, affecting over 62 billion WLFI tokens with new terms, including multi-year lockups and vesting schedules. Token holders who do not accept the new terms would remain locked indefinitely.
The criticism has been echoed by other figures, such as Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the proposal. 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 feud between Sun and WLFI has been ongoing, with tensions escalating over the past few months, including a threatened lawsuit and a sharp reversal in their relationship, which had previously seen Sun invest $30 million in WLFI tokens and take on an advisory role.