A public disagreement between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI intensified on Wednesday, as Sun harshly criticized a new governance proposal, labeling it 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun alleged that the project designed a vote that punishes dissenting voices, with token holders who oppose the proposal risking indefinite token lockups. He also claimed that he and other major holders were excluded from the process, stating that tokens representing approximately 4% of the voting power under his control had been frozen.
Furthermore, Sun questioned the vote's authority, suggesting that control over 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. Sun stated, 'This proposal is not about governance; it is an exercise of power by a select few who are carefully engineering a further power consolidation and property expropriation operation.' The criticism revolves around WLFI's new proposal, which would overhaul token lockups across the ecosystem, affecting over 62 billion WLFI tokens with new terms, including multi-year lockups and vesting schedules. Under the plan, tokens held by insiders 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.
Sun was not alone in his criticism, as Simon Dedic, founder of Moonrock Capital, argued that early investors had been 'rugged' by the Trump family. A World Liberty Financial spokesperson stated that the proposal 'was designed to further align all participants in the WLFI ecosystem for the long-run,' aiming to 'optimally ensure long-term participation in our ecosystem and help ensure healthy market supply.' The backlash marks the latest episode in the deteriorating relationship between Sun and the project, which has been escalating for months.