A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to Trump, has escalated after Sun strongly condemned a new governance proposal. Sun described the proposal as 'one of the most absurd governance scams' he has encountered, claiming it punishes dissenting token holders by locking their tokens indefinitely.
He also alleged that he and other large holders were excluded from the voting process, with his tokens frozen. Sun questioned the legitimacy of the vote, stating that control of the protocol rests with anonymous wallet addresses. The proposal in question would introduce new token lockup terms across the WLFI ecosystem, affecting over 62 billion tokens. Insiders would face a two-year lockup, followed by a three-year gradual release, and a 10% token burn.
Holders who reject the new terms would remain locked indefinitely. Other critics, including Simon Dedic, founder of Moonrock Capital, have also spoken out against the proposal, describing it as an attempt to 'rugged' early investors. A spokesperson for World Liberty Financial defended the proposal, saying it aims to 'align all participants in the WLFI ecosystem for the long-run' and ensure a healthy market supply. The backlash marks the latest development in the deteriorating relationship between Sun and WLFI, which has been building for months.