A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun denounced a new governance proposal as 'one of the most absurd governance scams' he has encountered. In a post, Sun alleged that the proposal is designed to punish token holders who vote against it, with their tokens potentially being locked indefinitely. He also claimed that he and other major holders have been excluded from the voting process, with tokens representing about 4% of the voting power under his control being 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 would 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 partners, would face a two-year lockup followed by a three-year gradual release, alongside a 10% token burn upon opting in.
Sun is not alone in his criticism, with Simon Dedic, founder of Moonrock Capital, describing the move as a 'rug pull' that gives the project another chance to extract value from investors. A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align all participants in the WLFI ecosystem 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 over the past few months.