A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to Trump, has intensified after Sun denounced a new governance proposal as one of the most absurd he has seen. In a detailed post, Sun accused WLFI of designing a vote that penalizes dissenters by locking their tokens indefinitely. He also alleged that he and other major holders were excluded from the process, with roughly 4% of voting power under his control being frozen. Sun questioned the legitimacy of the vote, claiming that control over the protocol rests with anonymous wallet addresses, including a multisignature setup that can override outcomes.
The proposal in question would overhaul token lockups, affecting over 62 billion WLFI tokens with new terms, including multi-year lockups and vesting schedules. Insiders would face a two-year lockup, followed by a gradual release, and a 10% token burn. Holders who do not accept the new terms would remain locked indefinitely. Other critics, such as Simon Dedic, founder of Moonrock Capital, have also pushed back against the proposal, describing it as 'rugging' early investors.
A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align participants for the long-term and ensure healthy market supply. The backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, which has been escalating for months.