A public dispute between Tron founder Justin Sun and the Trump-linked crypto project WLFI has intensified after Sun condemned 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 proposal is designed to punish those who vote against it, with token holders facing indefinite lockups.
He also claimed that he and other major 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 outcomes. The WLFI proposal aims to overhaul token lockups across the ecosystem, with over 62 billion tokens subject to 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 sparked a backlash, with other investors pushing back against the proposal.
A spokesperson for World Liberty Financial stated that the proposal is intended to align all participants in the WLFI ecosystem for the long-term, ensuring healthy market supply.