A recent governance proposal by WLFI has sparked a heated dispute with Tron founder Justin Sun, who has labeled it as 'one of the most absurd governance scams' he has encountered. Sun took to social media to express his concerns, stating that the proposal is designed to punish token holders who vote against it by locking up their tokens indefinitely. He also alleged that he and other major holders have been excluded from the voting process, with around 4% of the voting power under his control being frozen. 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. 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, saying it was designed to 'further align all participants in the WLFI ecosystem for the long-run' and ensure 'healthy market supply.' The dispute marks the latest escalation in the feud between Sun and WLFI, which has been building for months.
The tensions began when WLFI blacklisted a blockchain address linked to Sun, and intensified after the project deposited its own tokens into a lending protocol and borrowed stablecoins, causing the token price to plummet.