A public feud between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI has escalated after Sun vehemently criticized a new governance proposal. Sun took to social media to express his disapproval, labeling the proposal as 'one of the most absurd governance scams' he has encountered. He alleged that the proposal is designed to punish token holders who vote against it, with the risk of having their tokens locked indefinitely. Furthermore, Sun claimed that he and other major token holders have been excluded from the voting process, with approximately 4% of the voting power under his control being frozen.
The proposal in question aims to restructure 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, and a 10% token burn upon opting in. Sun's criticism was not isolated, as other figures in the cryptocurrency space, including Simon Dedic, founder of Moonrock Capital, have also spoken out against the proposal.
A spokesperson for World Liberty Financial defended the proposal, stating that it is intended to align participants in the WLFI ecosystem for the long term and ensure a healthy market supply. The dispute marks the latest development in the deteriorating relationship between Sun and WLFI, which has been building for months and has included accusations of user exploitation and threats of legal action.