A public dispute between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun vehemently criticized a new governance proposal. Sun claimed the proposal is designed to penalize token holders who vote against it, with their tokens potentially being locked indefinitely. He also alleged that he and other major holders had been excluded from the voting process, with approximately 4% of the voting power under his control being frozen.
Furthermore, 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 outcomes and a separate account with the power to blacklist users. The proposal in question would 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 do not accept the new terms would remain locked indefinitely.
The criticism has been echoed by other figures, including Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align participants in the WLFI ecosystem for the long term and ensure healthy market supply.
The backlash marks the latest escalation in the feud between Sun and WLFI, which has been building for months and has included accusations of user exploitation and threats of legal action.