A recent public spat between Justin Sun, founder of Tron, and WLFI, a cryptocurrency project linked to the Trump family, escalated on Wednesday. Sun strongly criticized a new governance proposal put forth by WLFI, labeling it 'one of the most absurd governance scams' he has encountered. In a post on X, Sun alleged that the proposal is designed to punish those who vote against it, with token holders facing the risk of having their tokens locked indefinitely. He also claimed that he and other major token holders had been excluded from the voting process, stating that tokens representing around 4% of the voting power under his control had been frozen.
Sun questioned the legitimacy of the vote, suggesting that control of the protocol rests with anonymous wallet addresses, including a multisignature setup that can override outcomes and a separate account with the power to blacklist users. 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. Token holders who do not accept 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, saying it was designed to 'further align all participants in the WLFI ecosystem for the long-run' and ensure a healthy market supply. The dispute marks the latest development in the deteriorating relationship between Sun and WLFI, which has been building for months.