A highly publicized dispute between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has escalated after Sun denounced a new governance proposal as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun asserted that the proposal is designed to penalize token holders who oppose it, with those voting against the proposal facing the risk of having their tokens locked indefinitely. Furthermore, Sun claimed that he and other significant holders had been excluded from the process, alleging that tokens representing approximately 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.
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. Holders who do not accept the new terms would remain locked indefinitely. Other critics, including Simon Dedic, founder of Moonrock Capital, have also pushed back against the proposal, with Dedic stating that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial defended the proposal, stating that it was designed to align all participants in the WLFI ecosystem for the long term and ensure a healthy market supply.
The backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, with tensions intensifying over the past few months. The dispute began when WLFI blacklisted a blockchain address linked to Sun, and has since escalated, with both parties trading accusations and threats.