A highly publicized dispute between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has escalated after Sun vehemently denounced a recent governance proposal. Sun took to social media to express his concerns, labeling the proposal as 'one of the most absurd governance scams' he has encountered. He alleged that the proposal is designed to punish dissenting token holders by locking up their tokens indefinitely if they vote against it. Furthermore, Sun claimed that he and other major token holders have been excluded from the voting process, with approximately 4% of the voting power under his control being frozen.
Sun questioned the legitimacy of the vote, suggesting that control of the protocol lies with anonymous wallet addresses, including a multisignature setup that can override voting outcomes and a separate account with the power to blacklist users. The proposal in question seeks to overhaul token lockups across the WLFI ecosystem, affecting over 62 billion tokens with new terms including multi-year lockups and vesting schedules.
Token holders who refuse to accept the new terms will have their tokens locked indefinitely. The backlash against the proposal is not limited to Sun, with Simon Dedic, founder of Moonrock Capital, also speaking out against it, stating that early investors have been 'rugged' by the Trump family. A spokesperson for World Liberty Financial defended the proposal, stating that it is intended to 'further align all participants in the WLFI ecosystem for the long-run' and 'ensure healthy market supply'. The dispute marks the latest development in the deteriorating relationship between Sun and WLFI, which has been building for months.
The tensions began to rise in September when WLFI blacklisted a blockchain address linked to Sun, and have since escalated with both parties exchanging public accusations and threats of legal action.