A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to Trump, escalated on Wednesday after Sun strongly denounced a new governance proposal, labeling it as one of the most 'absurd governance scams' he has encountered. In a detailed post, Sun accused WLFI of devising a vote that penalizes token holders who oppose the proposal, risking the indefinite lockup of their tokens.
Furthermore, he alleged that he and other significant holders had been barred from participating in the process, claiming that tokens representing about 4% of the voting power under his control had been frozen. Sun questioned the legitimacy of the vote, suggesting that control over the protocol lies with anonymous wallet addresses, including a multisignature setup capable of overriding outcomes and a separate account with the authority to blacklist users. The proposal in question seeks to overhaul token lockups across the WLFI ecosystem, subjecting over 62 billion tokens to new terms, including multi-year lockups and vesting schedules. Tokens held by insiders would face a two-year lockup, followed by a three-year gradual release, alongside a 10% token burn upon opting in.
Holders who decline 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 proposal.
A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align participants in the WLFI ecosystem for the long term, ensuring optimal long-term participation and healthy market supply. The backlash marks the latest development in the deteriorating relationship between Sun and WLFI, which has been escalating over the past months.