A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun publicly denounced a new governance proposal. Sun claimed the proposal is designed to punish token holders who vote against it by locking their tokens indefinitely.
He also alleged that his own tokens, representing around 4% of the voting power, had been frozen, preventing him from participating in the voting process. Sun criticized the proposal as an attempt to consolidate power among a small group of individuals, rather than a genuine effort at governance. The proposal in question would introduce new token lockup terms across the WLFI ecosystem, affecting over 62 billion tokens.
Insiders, including team members and partners, would face a two-year lockup, followed by a three-year gradual release, and a 10% token burn. Holders who do not accept the new terms would have their tokens locked indefinitely.
The backlash against the proposal has been fierce, with other investors, such as Simon Dedic, founder of Moonrock Capital, accusing the project of exploiting its early supporters. A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align all participants in the ecosystem for the long term and ensure a healthy market supply.
The dispute marks the latest escalation in the feud between Sun and WLFI, which has been building for months. The two parties have previously clashed over allegations of exploitation and misconduct, with WLFI threatening legal action against Sun earlier this week.