A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has escalated after Sun condemned a new governance proposal as one of the most 'absurd governance scams' he has encountered. In a recent post, Sun alleged that the proposal is designed to punish those who dissent, with token holders who vote against the proposal risking indefinite token lockups. He also claimed that he and other major holders had been 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 lies 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. 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. Holders who do not accept the new terms would remain locked indefinitely. The criticism has been echoed by other figures, including 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 dispute marks the latest episode 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.