A heated public disagreement between Tron's Justin Sun and WLFI, a crypto project linked to Trump, escalated on Wednesday, as Sun strongly criticized a new governance proposal, labeling it as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun accused the project of devising a vote that punishes those who dissent, with token holders who oppose the proposal risking indefinite token lockups.
He also alleged that he and other major holders had been excluded from the process, claiming that tokens representing approximately 4% of the voting power under his control had been frozen. Furthermore, Sun questioned the legitimacy of the vote, arguing that control over the protocol rests with anonymous wallet addresses, including a multisignature setup capable of overriding outcomes and a separate account with the power to blacklist users.
The criticism revolves around WLFI's proposal to overhaul token lockups, which would impact over 62 billion WLFI tokens, introducing multi-year lockups and vesting schedules. Token holders who refuse to accept the new terms would remain locked indefinitely. Sun is not alone in his opposition, as other investors, including Simon Dedic, founder of Moonrock Capital, have expressed concerns, with Dedic stating that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial defended the proposal, stating it aims to align participants for long-term success and ensure a healthy market supply.
The backlash marks the latest development in the deteriorating relationship between Sun and WLFI, which has been escalating over the past few months.