A highly publicized dispute between Justin Sun, founder of Tron, and WLFI, a cryptocurrency project linked to the Trump family, has escalated following Sun's sharp criticism of 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 claimed that token holders who vote against the proposal risk having their tokens locked indefinitely, and accused the project of excluding him and other major holders from the voting process.
Furthermore, Sun questioned the legitimacy of the vote, suggesting that control of the protocol rests with anonymous wallet addresses and a multisignature setup that can override outcomes. 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 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 echoed by Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the Trump family. In response, a World Liberty Financial spokesperson stated that the proposal 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 escalating, with the project threatening legal action earlier in the week and Sun accusing the team of exploiting users through DeFi transactions.
The dispute has been ongoing for months, with tensions intensifying after WLFI deposited its own tokens into a lending protocol and borrowed stablecoins, resulting in a significant decline in token value.