A recent governance proposal by the Trump-linked cryptocurrency project WLFI has sparked intense criticism from Tron founder Justin Sun, who has labeled 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 token holders who vote against it, with those opposing the plan facing the risk of having their tokens locked indefinitely. Furthermore, Sun claimed that he and other significant holders have been excluded from the voting process, with approximately 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 and a separate account capable of blacklisting users.
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. Token holders who do not accept the new terms would remain locked indefinitely.
Sun's criticism was echoed by Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial defended the proposal, stating that it was designed to align all participants in the WLFI ecosystem for the long term and ensure a healthy market supply. The backlash marks the latest escalation in the feud between Sun and WLFI, which has been building for months.
The dispute began when WLFI blacklisted a blockchain address linked to Sun and has since intensified, with both parties engaging in public accusations and legal threats.