A highly publicized dispute between Justin Sun, the founder of Tron, and the Trump-linked cryptocurrency project WLFI has intensified after Sun strongly condemned a newly introduced governance proposal. Sun described the proposal as one of the most absurd governance scams he has encountered, claiming it is designed to penalize token holders who vote against it by locking their tokens indefinitely.
He also alleged that he and other major token holders have been barred from participating in the voting process, with roughly 4% of the voting power under his control being frozen. Sun questioned the legitimacy of the vote, suggesting that control over 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. According to Sun, this proposal is not a genuine governance effort but rather an exercise of power by a select few to further consolidate their power and expropriate properties.
The proposal in question aims to overhaul token lockups across the WLFI ecosystem, affecting over 62 billion tokens with new terms including multi-year lockups and vesting schedules. Tokens held by insiders would face a two-year lockup followed by a three-year gradual release, alongside a 10% token burn upon opting in. Holders who do not accept the new terms would remain locked indefinitely.
Simon Dedic, founder of Moonrock Capital, also criticized the move, stating that early investors had been 'rugged' by the Trump family themselves. 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, ensuring optimal long-term participation and a healthy market supply. This backlash marks the latest episode in the deteriorating relationship between Sun and the project, which has been escalating over the past months.