A highly publicized dispute between Justin Sun, the founder of Tron, and WLFI, a crypto project linked to Trump, has escalated after Sun condemned the project's latest governance proposal. Sun described the proposal as 'one of the most absurd governance scams' he has encountered, stating that it is designed to penalize token holders who vote against it by locking their tokens indefinitely. He also alleged that his own tokens, representing around 4% of the voting power, had been frozen, excluding him from the voting process. The proposal in question aims to restructure token lockups within the WLFI ecosystem, affecting over 62 billion tokens with new lockup terms and vesting schedules.
Insiders, including team members and partners, would face a two-year lockup, followed by a gradual release over three years, and a 10% token burn. Sun's criticism centers on the claim that this proposal consolidates power for a select group and disregards the interests of other token holders. He argued that the true control over the protocol lies with anonymous wallet addresses, which can override voting outcomes and blacklist users. This feud between Sun and WLFI has been intensifying, with both parties exchanging accusations.
The project maintains that the proposal is intended to align all participants in the ecosystem for long-term success, while Sun and other critics view it as an attempt to exploit users and consolidate power.